Vocational Education and Training Reform in India
Business Needs in India and Lessons to be Learned from Germany
Santosh Mehrotra, Ravi Raman, Neha Kumra, Kalaiyarasan, Daniela Röß
Working paper
This report was prepared by a team led by Dr. Santosh Mehrotra, Director General, Institute of
Applied Manpower Research (IAMR). The team members were Dr. Ravi Raman, Kalaiyarasan,
Neha Kumra (IAMR) and Daniela Röß from Bertelsmann Stiftung. Dr. P. K. Saxena, Dr. Kamala
Devi, S. K. Yadav and Vijay K. Saxena assisted them in the primary survey.
The study was commissioned by the Bertelsmann Stiftung.
Vocational Education and Training Reform in India
Business Needs in India and Lessons to be Learned from Germany
Santosh Mehrotra, Ravi Raman, Neha Kumra, Kalaiyarasan, Daniela Röß
Working paper
5
Table of Contents
Table of Contents
Preface 8
ExecutiveSummary 9
Chapter 1 Introduction 12
Chapter 2 SkillsDemandinIndiaforGermanandIndianCompanies 16
2.1 Skills Gaps: Present and Future 2022 16
2.2 Demographic and Structural Transformation in India 18
2.3 Survey Results 18
2.4 Skills Gaps: Theory and Practice 20
2.5 Training Strategies: In-House Training 22
2.6 Small Company Options: Cluster Training 25
2.7 Joint Funding: Willingness to Collaborate 25
2.8 Final Remarks 27
Chapter 3 TheDualVETSysteminGermany:AModelforIndia? 29
3.1 Vocational Education and Training in Germany – a Brief Overview 29
3.2 Introduction of Euler’s Approach 31
3.3 Which Elements Are Important and Why 33
3.4 Final Remarks 35
Chapter 4 AdaptingtheElementsoftheGermanVETSystemtotheIndianSituation 36
4.1 Vocational Education and Training (VET) in India 36
4.2 Alternating Learning Situations in Accordance with the Dual Principle:
Combining Theory and Practice in the Indian VET 40
4.3 Vocational Training as a Task to be Carried out in Public-Private Partnership:
Enhance Public-Private Cooperation 42
4.4 Joint Funding: Involving Companies in the Funding of VET in India 43
4.5 Final Remarks 45
Chapter 5 FinalRemarksandRecommendations 46
Bibliography 50
Annex:ListofCompaniesSurveyed 54
6
List of Tables
Table 1: Education and training of the workforce, 2009/10 17
Table 2: Numbers to be skilled by education level in 2022 17
Table 3: Distribution of companies according to ownership 19
Table 4: Distribution of companies by sector 19
Table 5: Deficiencies in skills development as cited by large and small companies 19
List of Figures
Figure 1: Deficiencies in skills development as cited by large and small companies 20
Figure 2: In-house training by sector and employee numbers of companies 23
Figure 3: Large and small companies interested in inter-industry collaboration and
joint funding with government 26
Figure 4: VET: levels of responsibilities 30
Figure 5: Education and training system in India 38
Figure 6: Technical and vocational education system in India 39
List of Boxes
Box 1: Bosch Vocational Centre 21
Box 2: Socially embedded strategy? Infosys Technologies Ltd., Bangalore 23
Box 3: Tata Motors 42
Box 4: The Sino-German Automotive Vocational Education Initiative 44
7
List of Abbreviations
ACMA Automotive Component Manufacturers Association of India
AICTE All India Council for Technical Education
AITT All India Trade Test
ATS Apprenticeship Training Scheme
BBiG Vocational Education and Training Act
BiBB Federal Institute for Vocational Education and Training
BVC Bosch Vocational Centre
CBS Continental Business Systems
CII Confederation of Indian Industry
CTS Craftsman Training Scheme
FICCI Federation of Indian Chambers of Commerce and Industry
GIZ Gesellschaft für Internationale Zusammenarbeit
GTZ German Technical Cooperation
ITC Industrial Training Center
MHRD Ministry of Human Resources Development
MKI-DS Mubarak Kohl Initiative-Dual System
MOLE Ministry of Labor and Employment
MSME Micro, Small and Medium Enterprises
NCERT National Council for Education Research and Training
NCVT National Council for Vocational Training
NOS National Occupational Standards
NSDA National Skill Development Agency
NSDC National Skill Development Corporation
NSF National Skills Fund
NSQF National Skills Qualification Framework
NTF National Training Fund
NTTF Nettur Technical Training Foundation
OS Occupational Standards
PPP Public Private Partnership
SDIS Skill Development Initiative Scheme
SSC Sector Skill Council
SSLC Secondary School Level Certificate
TVET Technical and Vocational Education and Training
VET Vocational Education and Training
VTP Vocational Training Provider
8
Preface
Preface
India is among the countries with the lowest proportion of trained youth in the world. Even worse,
vocational education in secondary schools has received very limited funding since the mid-1980s;
it has remained non-aspirational, of poor quality and involves little industry collaboration. The
Vocational Education and Training (VET) system in Germany, in contrast, shows a much higher
proportion of youth participation, more intense involvement of the private sector and is anchored
in the law.
In this context, this study will take a closer look at the experience of Germany’s Dual System of
education and training, which has been historically cited as a successful model that has contributed
to the success of Germany’s manufacturing sector in global competition. Most of the 43 organised-
sector companies that responded to the primary survey for this study were large manufacturing
businesses. The survey attempted to identify the skills gaps experienced by German, Indian
and joint-venture firms in India. The study asserts the need to restructure the Indian Technical
Vocational Education and Training (TVET) system to address current and future challenges by
engaging the corporate sector, the state and students/parents as major social partners.
We would like to thank all the companies, organisations, institutes and their representatives who
participated in the study’s primary survey and provided useful input for preparing this report. We
would also like to thank Mr. Venkatram Mamillapalle (Tata Motors), Mr. Sandeep Balooja (Anand
Group), Mr. Shrikant Deshmukh (Mercedes-Benz) and Mr. Rajender Tamboli for providing key
input for the field survey in Pune. We would also like to acknowledge the support extended by Mr.
S. D. Shibulal (Infosys), Ms. Aruna Newton (Infosys), Mr. Rajeev Kumar (Wipro), Mr. Jayesh K. P.
(Continental), Mr. Rajesh Rao (Festo), Mr. N. P. Anil Kumar (NTTF), Mr. Simon Avinash (SAP), Dr.
O. P. Goel (BVC), Ms. Shweta (NTTF), Ms. Rajeshwari Krishnaswamy (Siemens), Ms. Padmashree
Madhusoodhan and Mr. Sivaraj Ambat (Tech Mahindra) for supporting our field survey in
Bangalore. Further thanks goes to Mr. Prakash Gill (Wiltan Telmag, Gurgaon) and Mr. B. P. Pant
(FICCI, New Delhi) as well as the members of the Indo-German Chamber of Commerce (New Delhi)
for their support.
We are also grateful to Mrs. Meenakshi Gupta and Ravinder Chakravarty for their editorial and
secretarial support.
9
Executive Summary
Executive Summary
This study on the issue of reforms to Indian Vocational Education and Training (VET) has been
undertaken at a time at which the country is facing both opportunities and challenges in India’s
growth story. Opportunities in terms of a demographic dividend are faced by the challenges of
persistent skills gaps: barely two per cent of the Indian workforce have formally acquired skills.
Only 2.4 per cent of the workers have technical education of any kind. The Indian government
has set a target to skill 500 million people by 2022. A different estimate suggests that a number
of 291 million skilled workers is needed by 2022 if India wants to become a globally leading
manufacturing economy (Mehrotra et al 2013).
Drastic restructuring of Indian VET has been suggested as one of the key routes to overcome
persisting skills gaps and pursue inclusive growth in the midst of demographic and structural
economic transformation. The study deals with this question by suggesting a reform agenda
through the adoption of certain critical elements of the historically successful German dual system,
i.e. the combination of practical and theoretical vocational training. However, the requirements on
the Indian labor market and the skills needed there raise concerns that go beyond the German
experience.
The three major objectives of the study thus are: 1) to understand the skills-related issues of
Indian and German companies operating in four sectors (chemicals, automotive, electrical and
electronics, and IT) in India; 2) to examine the possibility of transferring some elements of the
German dual system to the Indian context; and 3) to develop workable recommendations regarding
the areas in which the Indian system of skills development could be improved.
Findings from the primary survey
The findings from the primary survey support views that have often been raised in public
discussions in recent years.
a) A large number of the companies interviewed revealed that they were facing some sort of
skills-related problems, both in terms of quantity and quality of skills. This holds true for large
companies as well as for small and medium-sized enterprises.
b) The nature of training and availability of infrastructure for training within companies varies
according to company size. Larger companies have fully equipped training centers, while
smaller ones provide functional and work-oriented training to newcomers, based on their
immediate skills needs.
c) The most frequently cited deficiency of the current system of Vocational Education and
Training (VET) was the separation between theory and practice that needs to be resolved. The
lack of qualified trainers was addressed as a second big problem.
10
Executive Summary
d) Companies resort to technological changes to close the skills gaps replacing labor with new
machines.
e) Companies have expressed an interest in cooperating on skills development and basic training.
In particular small companies appeared interested in cluster-based training. Some of the
companies expressed reservations regarding joint funding models, since they are unwilling to
share their proprietary knowledge.
f) Some companies expressed a desire for the government to guarantee a return on companies’
investment in training by changing regulations or providing incentives to those that do provide
training.
g) Several enterprises suggested that changes to the Apprenticeship Act which regulates the
training of apprentices in the industry are required in order to render the remuneration and
duration of training more flexible. It is often argued that the Apprenticeship Act is largely
aimed at addressing the legal requirements and obligations set down by it, and not at the
actual improvement of skills.
h) In addition to this, there are problems such as a lack of awareness for apprenticeship schemes,
outdated curricula and cost of training.
Lessons of the German dual system and recommendations for India
The lessons that can be learned from the German model could help to overcome India’s challenges.
Three elements of the German model are of particular interest for the Indian context.
a) Germany’s success can largely be explained by the fact that the dual principle has been
systematically institutionalised in the country’s Vocational Education System. The dual
principle must become the basis of reforms of the Indian VET system, especially in secondary
schools. This requires the integration of state-of-the-art theory in vocational schools as well as
practical training in companies. Learning venues in India should include both classrooms and
worksites/factories.
b) Germany applies an integrated approach to VET. Here, various stakeholders (private companies,
the government, trade unions, employers’ associations, etc.) are actively involved as social
partners in designing curricula, codifying skills and stipulating standards. This approach
of public private partnerships (PPP) is desirable for India, where the private sector hardly
contributes to curriculum development at all yet and certification is governed solely by the
Ministry of Human Resource Development at this time. Industries and their associations should
be encouraged to help update teaching materials, practical training and occupational standards
in accordance with the skills they need. A new governance structure could be introduced
by passing a comprehensive Vocational Education and Training Act – roughly similar to the
11
Executive Summary
Vocational Education Act (Berufsbildungsgesetz, BBiG) in Germany – which would make the
VET system more adaptive to the requirements of the economy. A joint exercise among the
stakeholders of the VET system could be part of building up the long term institutional and
legal framework of the Government of India.
c) While more than 80 per cent of training costs are covered by the private sector in Germany,
the corresponding percentage is extremely low in India. In order to remedy this situation, we
recommend that public-private participation in sharing the cost of training be adopted in India.
One way to solve this issue is to establish a National Training Fund in India through which
private actors can contribute.
Recommendations beyond these elements of the German model of vocational education
Drawing on our survey and current discussions in India, there are other important steps beyond
the three elements of the German system mentioned above that should be undertaken to reform
VET.
a) Qualified trainers who are able to teach the theoretical and practical skills relevant for the
industry in India are a necessary precondition for a qualified workforce. This has also been
suggested by the companies which have been interviewed in the context of the study.
b) Small companies can develop cluster-based training approaches to counter the lack of training
capacities; industry associations are required to support such approaches by offering funds
with the help of state initiatives.
c) The adoption of Industrial Training Institutes/Industrial Training Centers by employers’
organisations or private companies could be one way to enhance public-private cooperation.
d) Industry should be required to invest in education and training as part of its corporate social
responsibility.
12
Human resource paradox
Persisting skills gaps
Chapter 1
Chapter 1
Introduction
India’s demographic development offers both opportunities and challenges. India is set to become
one of the youngest nations in the world by 2020. It is strengthened by the fact that the average
working Indian will be only 29 years by 2020 as compared to 37 in China and the US, 45 in
Europe and 48 in Japan (Economic Survey 2011–12, Government of India). This will clearly give
India an edge over the rest of the world with respect to its key human resources. However,
the challenges, if not addressed, may render such demographic dividends useless. The larger
structural transformation of the Indian economy has caused rural workers to leave their traditional
agricultural occupations: thirty-seven million workers left the agriculture sector between 2004–
05 and 2011–12 (Mehrotra et al. forthcoming) to join the construction, manufacturing and service
sectors. These workers have largely ended up in the informal sector, working in low-paid jobs,
largely due to lack of any form of vocational training. Another challenge that the country currently
faces is what we call the human resource paradox: high youth unemployment in combination
with a low skill availability of the workforce. Currently, it is as low as five per cent if vocational
education and other forms of technical education are taken together, as compared to more than
60 per cent in many other countries (see Planning Commission 2008; FICCI 2012). The challenge
is further strengthened by the fact that the lack of industry-specific skills is the most severe in
employment creating sectors such as manufacturing, software and automobiles.
Persisting skills gaps on the Indian labor market have been a serious concern for both policy
makers and industrialists in India. Various studies have highlighted skills gaps in different sectors
in India (Mehrotra 2012; Chenoy 2012; Jamal and Mandal 2013). At an aggregate level, just over
two per cent of the Indian workforce have skills training in formal vocational education. Only
another 2.4 per cent have received informal vocational training (Mehrotra 2012). The graduates
who have received vocational education also lack the skills required in the labor market. Thus, the
employability of graduates continues to be a major concern and there is no formal link between
general education and vocational training in the country. In addition, the labor market in India is
undergoing dynamic change. According to the National Policy on Skills Development 2009, it is
expected that 365 million people will be eligible to join the workforce over the next 15 years. About
11–13 million people are expected to look for employment opportunities each year. Sensing this
urgency, the 12th five-year plan cites skill development in different sectors as an important task
(Mehrotra et al, forthcoming). Persisting skills gaps also have qualitative dimensions, an aspect
often not highlighted in public discussions. Studies on the quality of skills and the mismatch
in demand and supply (FICCI 2006, World Bank, 2007, ILO, 2003, IAMR, 2010) have brought
to fore issues such as lack of marketable skills and low standards of quality. The reasons cited
include obsolete courses, failure to upgrade modules, failure to respond to market signals and the
consequent lack of functional skills (IAMR, 2011).
13
Lessons from Germany?
Three steps of the study
Four sectors and four city
clusters
Chapter 1
In this context, the study seeks to understand the experience of Germany’s dual system that has
been historically cited as a successful model of education and training (Euler 2013) and a reason
for low youth unemployment. Second, it wants to identify practical solutions for the issue of skills
gaps in India by reforming the Indian technical and vocational education system (TVET). The
study asserts the need to restructure and reorient the Indian TVET to address the current and
prospective challenges by involving the corporate sector, the state and students/parents as the
major social partners. It is argued that VET in India could be strengthened by adopting some of
the critical elements of Germany’s dual system, which in turn would fortify the Indian economy.
The study will explain the differences between the German and Indian systems, the key factors in
Germany and how these could be adopted to make a blueprint for practical application.
Objectives of the study
First, the study seeks to understand the skills-related employment issues of Indian and German
companies operating in four sectors (chemicals, automotive, electrical and electronics, and IT) in
India based on a survey.
Second, it looks at the experience of the German dual system as it has historically been cited as a
successful model of vocational education and training. It specifically looks at the eleven elements
of the German dual system identified in a study by the Bertelsmann Stiftung “Germany’s dual
vocational training system: a model for other countries” (2013), written by Professor Euler, and
identifies those elements that could be interesting in the Indian context. Three elements will be
discussed in detail and recommendations will be provided on how an effective Indian model could
be developed and advanced in terms of skill enhancement, joint funding, curriculum design and
work-effectiveness.
Third, it offers recommendations for improvement of the Indian VET system with the objective of
minimising skills gaps in India.
Methodology of the primary survey: sectorial approach
The methodology adopted in the primary survey is a sectorial approach with a focus on four sectors
spread across four city clusters and three states of economic (especially manufacturing) activity
in India: Chennai, Bangalore, Pune, and Mumbai (Tamil Nadu, Karnataka, and Maharashtra). This
enables us to study the differential nature of the requirements of different sectors with recognition
of two aspects as a common element:
(1) there is a shortage of required skills in the respective sectors and
(2) the companies still manage to run their business activities with their own way of making
trained workers available. Larger companies usually do this by way of in-house training, while
small and medium-sized enterprises try to find alternative training options.
14
Company sample
Research questions
Chapter 1
Forty-three (43) companies were surveyed, of which twelve were German companies, seven were
joint ventures, 20 were Indian companies and the rest (4) were joint ventures with companies from
other countries. Thirty-two (32) of the companies in our sample employed more than 100 workers
(and hence were relatively large); the rest employ fewer than 100 workers (and are called ‘small’
when we report our survey findings). In terms of sectors, 38 companies were in manufacturing,
while five of them were in services. We used a random-sampling technique from a comprehensive
list of companies in each sector made available to us by the Indo-German Chamber of Commerce,
New Delhi and Bertelsmann Stiftung, Germany. We selected them based on the sectorial
composition of companies and adequate representation by state. We included an additional sample
of Indian companies in order to compare and contrast Indian and German companies. Asking
specific questions, we sought to ascertain company satisfaction with the availability of skills, the
in-house training provided, companies’ expectations of the state with regards to meeting skills
gaps and the mechanism for potential collaboration.
Given the relatively small sample, one cannot make any broad generalisations. Still, the findings
provide valuable indications about the current situation and potential reform paths.
Outline of the survey research questions
The first part of this study addresses the following research questions:
• What are the current requirements and availability of different skills in the main business
sectors in which German companies are concentrated, such as the automotive and chemicals
industries, to what extent are they met through in-house training, what are their expectations
regarding state provision of training and how well would they be able to co-operate in the
program?
• What exactly are the obstacles faced by German and Indian companies in India in terms of
supply of skills required and company-skill compatibility?
• What institutional mechanisms and arrangements could be developed as part of reforming the
Indian VET by enhancing cooperation between the government and business sector in the area
of skills development?
• What specific recommendations could be generated to improve VET in India which would
integrate some of the critical elements of the dual system, such as public-private partnership
and in-house training? What role could each of the stakeholders involved play?
15
Chapter 1
Organisation of the report
The report is divided into five chapters. Following the introduction, chapter 2 discusses the
demand for skills among Indian and German companies operating in India. This is done with
a focus on four major sectors selected for study, namely chemicals, automotive, electrical and
electronics, and IT. We have also touched upon the gaps between the demand of the companies on
the one hand and the “supply” of the current VET system in India on the other hand to identify
what changes are necessary in the Indian VET system. This is largely based on our field survey.
Chapter 3 analyses the VET system in Germany, followed by Euler’s approach of dividing the
dual system into eleven elements. Closely related issues such as the dual principle, public-private
partnerships and joint funding are elaborated. Chapter 4 discusses the strengths and weaknesses
of VET in India, highlighting the need to reform the system. It also deals with the elements of the
dual system which could be integrated into the Indian system with a focus on Euler’s approach
and going beyond it as it takes into account the ‘best practices’ at home and abroad. In Chapter
5, we recommend specific reforms for improvement of the Indian VET system to meet the skills
requirements of these industries in the short and long run with the broader objective of higher
performance of the economy as a whole.
16
Trends in India
Structure of the survey
Level of education
Chapter 2
Chapter 2
Skills Demand in India for German and Indian Companies
Skills training is increasingly required in two areas: making new job seekers entering the labour
force employable and reskilling those who shift jobs. This is necessitated by two underlying trends
in India: the demographic dividend and structural transformation, trends which we have briefly
touched upon in Chapter 1. We will cover the same question in this chapter, but focusing on linking
up the skills demands of German and Indian companies operating in India. This is based on our
field survey of four sectors: automotive, chemicals, manufacturing and software/IT in the city
clusters of Chennai, Bangalore, Pune and Mumbai.
Section 1 introduces the skills gaps in the present context and the skills gaps we expect ten years
from now. Section 2 discusses the reasons for the urgency of skills training as explained in terms
of demographic and structural transformation of the economy. In Section 3, we present the survey
coverage of the companies studied in terms of ownership (joint ventures, German, Indian, etc.) and
sectorial composition. This is followed by the survey results in terms of theory and practice with
reference to those who qualify through the Vocational Education and Training (VET) programme
as experienced by industry (Section 4). In Section 5, the ways in which the companies address the
skills gaps and the nature of alternative arrangements, such as in-house training, that they resort
to are addressed. In Section 6, the option for small companies of organising cluster-based training
is discussed. Finally, we explore the willingness of companies to cooperate with joint funding.
2.1 Skills Gaps: Present and Future 2022
It must be pointed out that a large proportion of the workforce in India is either entirely illiterate or
has only primary/less than primary education. In 2009/10, only 50.8 million of the total workforce
of 460.2 million had a secondary education, 7.9 million had formal vocational training and 10.5
million had technical education1. As seen in Table 1, 228.2 million members of the workforce were
either entirely illiterate or had primary/less than primary education (Mehrotra et al 2013).
1 Technical education is imparted only to those with at least higher secondary schooling. Vocational education/training requires a minimum of 8 years of schooling, and often 10 years.
17
12th five-year plan
Estimation of skill
demand
Chapter 2
It is argued that the challenge for skills development in the 12th five-year plan is two-fold
(Mehrotra, forthcoming). The first target is giving the half of the current work force (about 228
million) which is either illiterate or has only completed primary education or less (likely to be
functionally illiterate except for the ability to write their name) functional literacy and numeracy.
Therefore, the government has to ensure that all children between the ages of 6 and 14 are
completing elementary education by the end of the 12th five-year plan, as required by the Right
to Education Act, 2009. Eight years of schooling is an essential pre-requisite for any teenager to
achieve admission to vocational training.
Second, a recent estimate of the number of people to be skilled by Mehrotra et al (2013) reveals
that two million workers are expected to join the workforce in India each year. The labour force
projected for 2022 would be around 580 million. Nearly 291 million of these – or about half of the
workforce – will need to be skilled by 2022.
Table 1: Education and training of the workforce, 2009/10
Workforce in age group 15–59 (420.6 million)
Current number (in millions) Share in per cent (approximation)
Not literate 125 29.72
Below primary, primary and literate without formal schooling (up to 5th grade)
103.2 24.53
Middle (6th to 8th grade) 74.1 17.61
Secondary (9th to 10th grade) 50.8 12.07
Higher secondary and above (diploma/certificate/graduate/postgraduate) (11th grade and above)
67.5 16.04
Total 420.6 100
Distribution of work force having vocational training and technical education
Formal vocational training 7.9 1.9
Technical education 10.5 2.4
Source: Mehrotra et al, 2013
Table 2: Numbers to be skilled by education level in 2022 (millions)
Formal vocational training 136
Vocational training for those informally trained 55
General education higher secondary & beyond 100
Total 291
Source: Mehrotra et al, 2013
18
Growth is slowing
High-growth and job-
creating sectors
Company sample
Chapter 2
2.2 Demographic and Structural Transformation in India
Since the current growth rate of the population is at 1.6 per cent per annum and the total fertility
rate is dropping towards the replacement rate of 2.6 (IAMR 2011), the workforce to be skilled will
likely continue to increase, though at a slower rate. The new entrants into the labour force and
those who shift jobs would comprise heterogeneous skills levels, both in terms of scale and quality.
They all would require varying degrees of skilling and reskilling.
The necessity of targeted skilling has yet another dimension, brought on by the structural
transformation of the economy. As has been highlighted by Mehrotra et al (2013), there has been
an outflow of labour from the agricultural sector mostly towards services and manufacturing in
urban areas. Nearly 37 million workers have already left traditional agricultural work between
2004/05 and 2011/12.
Training the unskilled and semi-skilled and making them employable would be the first major
task of any government. The 12th five-year plan thus faces challenging tasks: the government
has identified 20 high-growth sectors of industries and services that have the ability to provide
expanded employment, including ten high-growth job-creating sectors (manufacturing, textiles,
construction, automotive, health care, i.a.).
2.3 Survey Results
It must be noted here that our survey is a slice of the organised-sector companies. Organised-
sector contribution to total employment in manufacturing is at just about 15 per cent, while its
contribution to total output is at about 78 per cent (Mehrotra et al 2012). This must be taken into
account before prescribing any policy recommendations based on the field survey. As shown in the
tables below, 43 companies were surveyed, among them twelve German companies, seven joint
ventures, 20 Indian companies and four joint ventures with other countries. In terms of sectors,
38 companies were in manufacturing, while five of them were in services (see Table 3 below).
Similarly, among the 38 total manufacturing companies surveyed, the automotive and related
companies accounted for the largest share in the sample at 22 companies (see Table 4 below).
Nine companies were from electrical and electronics, and another five companies were from the
chemical sector. If we look at the distribution of companies in terms of nature of products (capital
goods, intermediate goods and consumer durables etc.), we find that most of the companies (35)
are in the intermediate sector, following an equal distribution of companies in capital goods and
consumer durables. Many of the companies belonging to the intermediate sector are suppliers of
electronics, brake systems, chemicals, ICT and machine tools. Case studies among the companies
with state-of-the-art in-house training are analysed in the hope that other companies could emulate
such practices.
19
Nature of skills gaps
Chapter 2
This field study reaffirms the skills gap in India and goes further in identifying the nature of skills
gaps in the sectors that we selected for our study. Almost all the companies that we had interviewed
revealed that they were facing some sort of skills-related problems (36 companies out of 43). The
skills-related problems are twofold: quantity and quality. The companies that are smaller in size are
facing shortages in the quantity of skilled personnel. Small companies generally face competition
for low-end skills such as those of fitters and electricians. Large companies, meanwhile, face the
problem of quality of skills which they attribute to the weaknesses of the Indian educational
system, including that of VET. The problem named most often is the insufficient link between
theory and practice (see Figure 1 below).
2 The National Capital Region (NCR) in India is the designation for the conurbation or metropolitan area which encompasses the entire National Capital Territory of Delhi, including New Delhi, as well as urban areas surrounding it in the adjacent states of Haryana, Uttar Pradesh and Rajasthan.
Table 3: Distribution of companies according to ownership
German Indian Joint Venture Others Total
Large Manufacturing 8 12 4 4 28
Services 2 2 0 0 4
Small and Medium Manufacturing 2 5 3 0 10
Services 0 1 0 0 1
Total 12 20 7 4 43
Source: Computed from the field survey
Table 4: Distribution of companies by sector
Electricals & Electronics
Chemicals Auto and Auto Components
IT Others Total
Maharashtra 3 2 16 1 1 23
Tamil Nadu 3 2 5 0 0 10
Karnataka 2 1 1 4 1 9
National Capital Region2 1 0 0 0 0 1
Total 9 5 22 5 2 43
Source: Computed from the field survey
Table 5: Deficiencies in skills development as cited by large and small companies
Large Small and medium
Link between theory and practice 19 4
Curriculum 11 3
Industry exposure 7 3
Teaching quality 3 0
Motivation 4 0
Communication 6 0
Source: Computed from the field survey
20
Lack of knowledge
Deficiencies of VET
Chapter 2
2.4 Skills Gaps: Theory and Practice
Most companies in our survey complained that the students who graduate from Industrial Training
Institutes (ITIs) and Polytechnics lack application-oriented knowledge and problem-solving skills.
Some cited a lack of industrial exposure of students. The companies were almost unanimous in
affirming that they need to train the new recruits on the job to make them employable. This is
a major shortcoming of the way in which VET is organised and governed in India. Therefore,
both micro and macro studies show that not only the percentage of the workforce having formal
vocational training and technical education is low, but the quality of those who are trained also
cannot meet the demands in industrial skills. For instance, Suspa Pneumatics India Pvt Ltd, which
specialises in manufacturing gas springs and hydraulic dampers, said that “students lack even
basic technical knowledge and don’t have curiosity and motivation to learn”.
VET may attract a sufficient number of candidates, but as Nettur Technical Training Foundation
(NTTF)3 has rightly pointed out in its interview, “instead of increasing the intake of students, it is better
to increase knowledge of students,” which in turn requires intensive teaching and practical training,
the latter taking place in labs and on worksites. In addition, as has been raised in the discussions
organised by the Bertelsmann Stiftung in Bangalore, “the orientation towards application is missing”
in Indian vocational education. Up-to-date theoretical training in schools has to be combined with
3 NTTF is an educational foundation established in 1963. It implements its program of Technical Training in more than 20 training centres located in various states across India. NTTF assists industries by establishing training centres in partnership with industry associates.
Source: Computed from the field survey
Figure 1: Deficiencies in skill development as cited by large and small companies
0
10
20
30
40
50Communication
Motivation
Teaching Quality
Industry Exposure
Curriculum
Link between theory and practice
Small and mediumLarge
Communication Motivation Teaching quality
Industry exposure Curriculum Link between theory and practice
19
11
7
4
6
3
34
3
21
The Bosch example
Chapter 2
relevant practical training at the worksites or at adequate training institutions. As the Human
Resource faculty of Continental Automotive Components Ltd stated, lecturers need to go through
training and should be exposed to industry: “They should be working for industry compulsorily”. The
Wipro representative noted delivery issues in teaching. He expressed concern about how to evaluate
students: “today I don’t know how to calibrate a Tamil Nadu kid’s grade with a West Bengal kid’s
grade”, “our 12th grades and engineering grades are highly non-calibrated” with regard to content
and the extent to which real-life experience is imparted. He also said “We don’t promote enquiry-
based teaching… we need to promote the culture of one question with many right answers”.
In this context, the case of the Bosch Vocational Centre (BVC) in Bangalore should be mentioned,
which draws on the German dual model. Bosch has training centres in Pune, Jaipur, and the
outskirts of Bangalore. The student employees are paid a stipend of Rs. 3,000–4,000 during
apprenticeship and 30–40% of the students are from Scheduled Castes, Scheduled Tribes and
other backward communities; most of the students are supporting families. Students at Bosch are
trained for three years under the Apprenticeship Training Scheme after 10th grade. Students are
selected on the basis of marks, written tests, and interviews. The curriculum at BVC is customised
to Indian requirements. It is the culmination of systems expertise and infrastructure. Industry
exposure within the ITI/Craftsman Training Scheme is limited, whereas students at BVC are
engaged with the industry (see Box 1 below on the Bosch Vocational Centre). Furthermore, NTTF
mentions that the “Bosch Vocational Centre can be treated as role model…people should realise
the importance of dual system… we are ready to tie up with BVC, Siemens …”.
Box 1: Bosch Vocational Centre
Training activity at Bosch Ltd dates back to 1953. The need for skilled manpower was felt
from the start of Bosch’s operations as its product lines of spark plugs and fuel injection
equipment are high-precision items. Prompted by the requirement for skilled manpower,
the Tool Room Apprenticeship scheme was started in 1953, and the Bosch Vocational
Centre (BVC) was established in 1960. The BVC was conceived and set up as a fully-fledged
training centre to develop the base of skilled personnel required to produce high-quality
products on sophisticated machines. Since then, the BVC has been the centre to cater to
all training needs of the company. It is notable that the BVC was established before the
enactment of the Apprentices Act. In fact, the committee responsible for the formulation of
the Act visited Bosch Ltd and found that the BVC was a working model for them to study.
Bosch’s insights on the draft memorandum of the Act were sought.
Presently, there is a group of 24 dedicated faculty members guiding the trainees to achieve
excellence. The training schemes include trade apprenticeship training, which takes 60
students at Secondary School Level Certificate (SSLC) level in two batches each year, and
graduate apprenticeship training, which takes 30 engineering graduates in Mechanical,
Electrical, Electronics, Mechatronics, Automobile, Industrial Engineering & Management
22
Small and large
companies
Training facilities
Chapter 2
and Industrial Production & Engineering streams each year. In addition to this, the project
trainee scheme at Bosch Ltd was started in 1995 as a social obligation to strengthen the
industry-institute relationship. In its scope, final-year engineering students from various
colleges are allowed to carry out their project activities to fulfil their academic requirements
while gaining experience in an industrial working environment.
Source: Information Booklet, Bosch Vocational Centre, Bangalore
Most of the companies in our study expressed a desire to participate in the curriculum design
of ITIs through an appropriate institutional mechanism developed by the government. They also
believed that collaboration between the industry and government is possible and that employers’
associations have a role to play. In addition to this, they expressed a need for lecturers at vocational
schools to go through training and be exposed to industry. Moreover, enquiry-based teaching needs
to be promoted. Subjects taught need to be industry-relevant.
2.5 Training Strategies: In-House Training
One way to overcome skill deficiencies is to provide some form of in-house training for new recruits
and employees. The Human Resources departments of selected companies were asked whether
they have had any form of in-house training centre. Even a single training room is considered in-
house training.
The size of the companies was determined according to the number of employees on their payrolls;
those employing less than 100 workers were designated as small, and those with over 100 employees
were designated as large. For the small companies, the number of employees varies from nine to
100. For the large companies, it varies from 110 to as high as 100,000. Half of the companies
employing between 110 and 1,000 workers are in the automotive and automotive components
sector. Out of the 15 companies that provide employment in the range of 110 to 100,000, eight are
in the automotive and automotive components sector. With respect to the IT sector, four of the five
companies surveyed employ between 1,000 and 100,000 workers. It is clear from the survey that
the large companies have to resort to some form of in-house training to remain productive and
competitive. Small companies repeatedly said that they cannot afford to have their own training
centres. Most of them are facing a shortage of skilled workers. Shortages of skills and skilled
workers often result in higher wages than the competitive equilibrium wage.
Among the 30 companies reporting facilities for in-house training, 27 are large companies
(employing more than 100 workers) and the rest (3) are small and medium-sized (see Figure 2
below). Out of 22 companies interviewed in the automotive sector, 15 had in-house training centres.
Among the nine companies in the electrical and electronic sector, seven had some form of training
facilities. The remaining eight that had training facilities were from the chemical and IT sectors.
23
Training varies according
to the size of companies
Chapter 2
Of the 22 companies interviewed in Bangalore and Chennai, eleven of them have training facilities
on factory premises or elsewhere. However, the nature of training and availability of infrastructure
varies according to the size of companies. Larger companies have fully equipped training centres,
while smaller ones give functional and workable training to newcomers based on their immediate
skills needs. Investments in training are made where companies are certain of a return from the
training and confident that they will be able to retain trained workers. A comprehensive training
programme that caters to potential employees, external candidates and faculty alike (as in the case
of Infosys) is often indicative of efforts towards corporate social responsibility (see Box 2).
Box 2: Socially embedded strategy? Infosys Technologies Ltd., Bangalore
Caring for existing and potential employees – from training schools to corporate cabins
– can be both a strategy and an act of social responsibility. In the context of training, it
ensures a steady supply of skilled professionals. In terms of social responsibility, it boosts
morale in the company while projecting a favourable public image. In this context, no
other foundation programme in the world is as vast and well-integrated as that of the
Infosys Global Education Centre (GEC). The residential training programme for entry-
level engineering graduates at the GEC in Mysore has been imparting generic and stream-
specific training in various technology domains to new recruits every year. GEC also offers
Source: Computed from the field survey
Figure 2: In-house training by sector and employee numbers of companies
0
5
10
15
20
25
30Others
IT
Chemicals
Electricals and Electronics
Automobile
Small and mediumLarge
Others IT Chemicals
Electricals and electronics Automobile
13
21
6
3
4
1
Note: Total companies offering in-house training was 30, of the 43 surveyed.
24
Chapter 2
training in soft skills and leadership programmes that are taught by talented trainers.
About half of the teachers are trainers with technical and non-technical expertise. The
training programme starts with basics and includes comprehensive modules. The 23-week
course begins with an internship followed by regular training in selected technologies to
suit the particular requirements of organisations.
Over 100,000 entry-level engineers have been trained here so far. The facility can house
15,000 trainees at any one time. This is the brainchild of Infosys, one of the leading IT
companies in India which currently employs 103,000 people in more than 50 offices across
the globe. Infosysians, as they are called, are responsible for designing and delivering
IT-enabled business solutions to the clients around the world. These solutions focus on
providing strategic differentiation and operational superiority to clients.
Campus Connect
Knowing well that the IT industry as a whole needs to “scale up industry-ready high-
quality students to meet the growing demands of the industry”, Infosys launched Campus
Connect in 2004, a first-of-its-kind industry-academia interaction programme. Campus
Connect aims to be a partnership forum where the best practices at Infosys are shared
with institutions. At this time, 60 engineering colleges all over India have taken part in
the programme. More than 275,589 students and 9814 faculty members have benefited
from this process of aligning engineering talents with industry requirements. Campus
Connect also conducts Faculty Enablement Programmes to train the partner college faculty
on Foundation Programme course delivery and industry-oriented courses. Both the GEC
and Campus Connect are testimonies to Infosys‘ commitment to building the competency
of their own employees and corporate social responsibility to the larger society.
In 2009, Infosys announced the expansion of its GEC in terms of infrastructure, training
programmes and business activities. While trainees from India find GEC no less than
a home, special programme participants from abroad find it a home away from home
with state-of-the-art academic facilities (master class rooms, training rooms, libraries,
conference halls) and holistic day to day life with fitness and recreation facilities, including
football, cricket and tennis grounds spread over 337 acres.
Given the fact that Infosys is one of the global giants, it only attracts young professionals
thus obviating the free rider problem. The company is also insulated from attrition, a
common concern among other companies.
Source: Infosys Technologies Ltd, www.infosys.com
25
Skill needs of smaller
companies
Willingness to cooperate
Joint funding schemes
Chapter 2
2.6 Small Company Options: Cluster Training
Smaller companies express interest in cluster training for skill needs in specific industries. They
expect the government to play an active role in co-ordination or building of nodal agencies to
impart training. Companies expect security of return on the investment they make in training.
Some companies expressed a desire for the government to guarantee such return by changing
regulations or providing incentives to those companies that provide training. They also articulate
the need for changes to the Apprenticeship Act4 to make it flexible in terms of setting pay and
duration of training.
It was mentioned in our survey that companies are unable to influence each other’s decisions to
engage in inter-company collaborative projects, as it involves acceptance by the other company
and high investments. Companies expect the government to co-ordinate them and to contain
free-rider problems: other companies will hire already-trained workers and thereby free-ride
upon investments made by one company in training or any of the state-run vocational schools.
Companies also express concerns about inter-industry cooperation where proprietary technologies
are concerned, since technology provides an edge in competition between companies. However,
companies expressed a willingness to be part of such cooperation for some generalised basic
training (see Figure 3 below).
2.7 Joint Funding: Willingness to Collaborate
Another significant finding is that companies are willing to cooperate with others in skills
development programmes and joint funding with government. About 19 large companies reported
their willingness to reserve funds for joint funding schemes for skills development while only
three small companies expressed their interest in joint funding (see Figure 3 above). However,
those companies that already have a training centre are not as interested in participating in joint
funding. Some of them, like Wipro, have international training arrangements. Small companies
are of the opinion that they cannot afford to invest in skills development. Similarly, about 22
companies have expressed an interest in working with other companies on skills development.
Some of the companies expressed reservations regarding joint funding models as there is
unwillingness to share their “proprietary knowledge”. Only a few companies that already have
training centres have no interest in further co-operation with other companies. While companies
like Wipro, Continental Automotive Components Ltd., and Bosch have international collaboration
for their training programmes (with Germany, the UK, etc.), small companies do not have the
means for such facilities.
4 http://dget.nic.in/schemes/ats/Act1961.htm; http://dget.nic.in/schemes/ats/ATSOverview.htm. The Act was first amended in 1973 to include training of Graduate and Diploma Engineers as “Graduate” & “Technician” Apprentices; amended in 1986 to bring training in the 10+2 vocational stream as “Technician (Vocational)” Apprentices within its purview; amended in 1997 as regards definition of “establishment” and “worker”, termination of apprenticeship contract, number of apprentices for a designated trade, practical and basic training of apprentices, obligation of employers, penalty for contravening the provisions of the Act and cognisance of offences. The Act was again amended in 2008 to modify various sections of the Act as regards reservation for candidates belonging to Other Backward Classes, cost of training and so on.
26
Deficiencies of ITIs
Chapter 2
Continental Automotive Components Ltd., a large company that states that training requirements
are “client-specific”, runs three sets of training – developmental trainings on automotive
components, a leadership programme and different verticals (body and security of vehicles, fuel
supply, IT materials and car interior). They have a training team for Continental Business Systems
(CBS) – imbibing concepts of production, quality, related parameters – and also invite trainers
from Germany and from the Philippines.
The representatives of Bosch believe that ITIs in India are not lacking funds but that their
infrastructure needs to be better maintained. The BVC has had experience with Memoranda of
Understanding with ITIs in which they took a few ITIs and improved them according to industry
requirements. They organised affiliation tours with the government, and participated in fixing
course curricula. Trainers in ITIs were given technical know-how, and were exposed to maintenance
in a train-the-trainers programme; Junior Technical Officers in the government were trained in
various skills (six to eight batches in a year). Bosch is also of the opinion that various associations
such as The Automotive Component Manufacturers Association of India (ACMA), Karnataka Skills
Council, the Confederation of Indian Industry and others could intensify their involvement in
skills training. According to them, investment in training happens across a period of time, on the
shop floor, in a few classes, etc. Furthermore, in certain sectors such as automotive, the amount
of investment in training could be higher, while no significant investment is involved in fitting.
Investment could be at around Rs. 50 million for four or five trades taken together. According to
them, the problem is not the actual budget constraints but to quote, “the optimum use is the idea ...”.
Source: Computed from the field survey
Figure 3: Large and small companies interested in inter-industry collaboration and joint funding with government
0
5
10
15
20
25
30
35
40
45Inter industry
Joint funding
Small and mediumLarge
Inter-industry Joint funding
19
4
5
22
27
Shortage of skilled
workforce
Three major lessons:
Assuring private
participation
Joint training
programmes
Cluster-based
programmes
Chapter 2
Large companies like Tata Motors and many members of the Federation of Indian Chambers
of Commerce and Industry have already adopted ITIs and introduced very imaginative ways of
running the courses by revising the modules, upgrading the technologies available and absorbing
the outgoing students in remunerative jobs (see Box 3 on Tata Motors in Chapter 4).
2.8 Final Remarks
The micro-level field evidence from our survey in Bangalore, Chennai, Pune and Mumbai
substantiates the macro picture of a shortage of skilled workforce in India’s labour market. The
companies studied respond to this skills gap in two ways: most resort to on-the-job training for new
recruits, while some have in-house training programmes on the factory premises (though quality
varies widely). With regard to the former, India clearly has the lowest level of in-company training
among the BRIC countries of Brazil, Russia, India and China. However, our evidence suggests
that as many as 30 of the 43 companies surveyed have in-house training of some kind. While
large companies have organised training schemes with huge investments, smaller companies are
satisfied with low levels of training.
The empirical evidence suggests three major lessons on how VET succeeds and fails to meet the
skills gaps in the Indian labour market.
First, given the fact that there is a wide difference between theory and practice as explained by the
companies, reforming the Indian VET has been of the utmost importance, which would be possible
only by assuring private participation in the administration of the Indian VET system. Private
companies expressed their interest in joining the preparation of curricula, codifying skills and
practical training and thereby bridging the gap between theory and practice. However, we found
limited evidence of this interest/intent.
Second, private companies are interested in joint training programmes, including joint investments
in training, though some reservation was expressed by some larger companies already running
well-organised training programmes. Large Indian companies have adopted ITIs and invested
in infrastructure and training facilities. The members of the Federation of Indian Chambers of
Commerce and Industry (FICCI) have already adopted several ITIs and have expressed an interest
in taking over more of them, which would help to improve the Indian VET system in terms of
infrastructure development, practice-orientation and industry-specific training programmes. The
Confederation of Indian Industry (CII), too, has adopted more than 240 ITIs with the same purpose.
Third, small companies would do well to experiment with various forms of training schemes
such as cluster-based programmes. Industry associations would be preferable to large employers’
associations. They also expect the government to play an active role in coordinating or building
nodal agencies to impart training. Companies expect a guaranteed return on the investment they
make in training.
28
Chapter 2
As companies invest in new technologies, the Indian VET system should become capable of
accommodating them, which in turn requires the active participation of stakeholders through
public-private partnership models.
29
Chapter overview
German VET system
Chapter 3
Chapter 3
The Dual VET System in Germany: A Model for India?
In this chapter, we give a short overview of the German dual system of Vocational Education
and training (VET) and look for elements that are useful in the Indian context. Given the fact
that ‘borrowed models’ pose problems of their own, we do not want to discuss replication of the
German dual system as such. Instead, we aim to identify the most useful aspects of the dual
system that would be relevant for India and could be successfully integrated into the Indian VET
system. An entry point into the discussion is the study “Germany’s vocational education system: a
model for other countries” by Professor Dieter Euler published by the Bertelsmann Stiftung. The
study identifies eleven core elements of the German dual system and discusses their potential for
transfer.
In Section 1, we briefly discuss the German Vocational Education and Training system, Section 2
explains the eleven elements of the dual system as identified by the study, and Section 3 explains
what elements are important for the Indian context and why.
3.1 Vocational Education and Training in Germany – a Brief Overview
Vocational Education in Germany is part of the national education system. Students commence
training after 9th grade of school at the earliest. The courses last 2 to 3.5 years. The legal basis of
the German VET system is the VET Act (BBiG) from 1969, which has been subsequently revised.
In general, more than 50 per cent of those in upper general education opt for such vocational
training. The two major pillars of the dual system are the workplace within a company and part-
time vocational school. Learning at both venues is governed by distinct but coordinated regulations.
The company provides practical training while the vocational school supplements this on-the-job
learning with theoretical instruction. There are about 350 different occupations in the technical,
agricultural, commercial and industrial areas. This also includes the public administration sector,
health and social services. As a rule, trainees spend eight to twelve hours per week at school; the
remaining time is spent at the actual worksite. To become an apprentice in the dual system, a young
person has to apply to a company for an apprenticeship and sign a training contract. The right
to attend the corresponding classes at the part-time vocational school is given automatically. The
vocational course ends with an assessment held by an appropriate authority. The latter includes
various chambers such as the Chamber of Trades and Handicrafts, the Chamber of Industry and
the Chamber of Commerce, the Bar Association and the Schools of Administration. The relevant
chamber will establish boards of examiners consisting of the representatives of employers,
employees and at least one vocational school teacher for the final examination of the students.
30
Importance of
co-determination
Chapter 3
Generally speaking, co-determination of the employers’ associations and trade unions in
regulation, curriculum design, certification and funding form the building blocks of the German
dual system. This co-determination is further reinforced by the fact that the VET is implemented
by the Federal Institute for Vocational Education and Training (BIBB) through continuous dialogue
and consensus between the stakeholders. The employers’ associations and trade unions, who are
partners in the policy governance of BIBB, exert considerable influence on the content and form
of VET to ensure that their requirements and interests are taken into account. In particular, the
Federal government recognises training occupations by ordinance and issues training regulations.
The states (Länder) are mainly responsible for the curricula for the part-time vocational schools
and funding of the teaching staff. Employers and unions draft proposals for training occupations
and negotiate provisions concerning apprenticeships in collective agreements. The chambers
supervise training in the company, training of instructors and administer examinations (BMBF
2011). The different levels of responsibilities and the corresponding tasks within the German VET
system are illustrated below:
Source: Berufsausbildung sichtbar gemacht. Grundelemente des dualen Systems BMBF 2003 (p. 19).
Figure 4: VET: Levels of Responsibilities
Federal
Regional
Institutional
National
• Department of Education (BMBF)• Federal Institute for VET (BIBB)• Responsible departments for each trade/profession
• Conference of Education Ministers (KMK)• Federal departments
• Chambers of Trade, Commerce, etc.
• Vocational schools• Companies
• Laws and regulatory frameworks
• General Curricula• Vocational Curricula
• Oversee VET final exams• Control companies in VET
• Provide general education and specific vocational education• Provide training on the job
31
Tackling youth
unemployment
Eleven core elements
Chapter 3
The dual system approach has gained a lot of attention in the international discussion for its
success in tackling youth unemployment. Countries with dual VET systems have the lowest youth
unemployment rates. The dual vocational training system does not only ensure that the business
world will have access to skilled workers with real-world training, but also facilitates young
people’s transition into the labour market. So it is argued that the dual model helps in reducing
the skills gaps and unemployment and that it promotes growth.
3.2 Introduction of Euler’s Approach
In his study for the Bertelsmann Stiftung, Professor Euler (2013) identifies eleven essential
elements in the German dual system and suggests ways to export these elements to other countries
in a modified form. These elements include
(1) Provisionofvocationaleducationasameansofachievingsocio-economicand
individualgoals:
The broad objective of the German dual system is three-fold: economic productivity of the
workforce, social integration and individual development of the apprentices, which forms
the central reference point for the VET. It also integrates the interests of three major
stakeholders – the state, the business community and students and parents –, thereby
balancing their different goals.
(2) Productionofskilledworkerswithflexiblequalifications:Themainobjectiveof
vocationaltrainingistomeetthepracticalneedsofthelabourmarket:
The training system is designed in such a way as to allow individuals to be flexibly employed
in a wide variety of jobs within a certain sector which in turn meet the requirements of
industry as well as those of the individuals concerned. This adds value to education in a non-
academic context.
(3) Alternatinglearningsituationsinaccordancewiththedualprinciple:
In Germany, apprenticeships and vocational training are provided by vocational schools
and companies according to the framework curricula (established by the Conference of
Education Ministers) and training directives which provide an effective combination of
theory and practice. Although occupational skills are aligned with the labour market, they
are not “narrowly focused” on the requirements of business interests.
(4) Vocationaltrainingasatasktobecarriedoutinprivate-publicpartnership:
This implies co-determination of the employers’ associations and trade unions in a
consensual manner for formulation of occupational profiles, conducting examinations,
finding placements, etc. All of this contributes to raising the profile of VET and making it
more acceptable to the public.
32
Chapter 3
(5) Jointfunding:
In Germany, VET is a dual system that is managed and funded by the government and
companies. In 2007, for example, the states (Länder) paid Euro 2.9 billion, whereas the
companies had a share of Euro 3.6 billion net expenditure (Euro 15.3 gross expenditure).
While such investments form part of the recruitment strategy of the companies, they also
lower the costs incurred by government.
(6) Complementaryprogrammesrunbyschools:
There are two types: first, in addition to training under the dual system, certain sectors
offer other types of training, e.g. school-based training in healthcare professions. Second,
the government provides subsidiary training programmes that are run by schools or non-
business entities if there is a lack of company-based training positions.
(7) Codificationofqualitystandards:
The government ensures high-quality training via regulation of minimum standards
and highly differentiated occupational profiles. This allows monitoring of standards and
transparency.
(8) Qualificationofteachertraining:
The qualification of teachers in vocational schools is regulated at the Federal level. They
usually hold a relevant university degree. Trainers in companies must hold a certificate of
suitability, but the regulation here is much more limited.
(9) Balancebetweenstandardisationandflexibility:
Standards of training are to be flexible according to size, sector and other requirements
based on diverse structural models. This would help meet the diverse requirements of
business while maintaining minimum standards.
(10) Creatingasolidbasisfordecisionsanddesign:
The German vocational education system is supported by various research, planning and
statistical tools and monitoring instruments. The Federal Institute for Vocational Education
and Training (BiBB) acts as the interface between academia and policy makers here to
ensure centralised changes to improve vocational training.
(11) Socialacceptanceofvocationaleducation:
A high level of social acceptance is an important factor in the system’s success. Although
there are substantial differences in acceptance of vocational education across different
occupations, there has been a fair degree of social acceptance on average.
33
A model, not a blueprint
Lessons learned
The dual principle
Situation in India
Chapter 3
3.3 Which Elements Are Important and Why
Not all of the above components are strictly replicable in other countries. The “modular approach”
to transfer as presented with these eleven elements implies that there is no ideal vocational
education system. Instead, customised solutions have to be adapted to the needs of a specific
country. The present study identifies three focus components in Euler’s approach that are
adaptable to the Indian context.
First, the main objective of vocational training is to produce skilled workers. Therefore, learning sites
should be alternated in India in accordance with the dual principle in the sense of the integration of
theory and practice. The dual principle can be implemented using various combinations of locations,
with varying amounts of time spent at each, in different ways and to differing degrees, and periods
of practical training in the company setting can be integrated into an alternate training system.
Second, vocational education and training should be carried out in a public-private partnership
where both the government and the private sector play active roles. Third, the costs for vocational
training should be borne proportionally by both government and private enterprise.
3.3.1 Alternating Learning Situations in Accordance with the Dual Principle
In his study, Euler (2013) differentiates between the “dual system” and “dual principle”. The dual
system refers to specific institutional regulatory setup of vocational education, while “dual principle”
means the way in which theory and practice are combined. As Euler suggests, although the dual
principle is a core element of the dual system, it may well work in other vocational educational models
as well. The application of the dual principle – theoretical training in vocational schools combined
with on-site training in companies – provides apprentices with in-depth knowledge about the job and
processes at worksites. Euler’s dual principle implies the integration of theory and practice, thinking
and acting as part of a single process. Conception and execution as a continuum is what is essentially
embedded in German dual-system education.
The key element of the dual system that is needed in the Indian context is the mechanism which
combines theory and practice effectively. Various studies (NSDC 2009 and Mehrotra 2013), including
our own field survey, highlight the need of application and practice oriented vocational education in
India. Industry involvement in training initiatives has been extremely low. For instance, India has the
lowest level of in-company training among the BRIC countries of Brazil, Russia, and China. The share
of companies that are currently providing on-site in-company training to their full-time permanent
workers is only 15.9 per cent (World Bank, 2007). This share of Indian companies offering training is
low as compared to that in other developing countries. There has even been a decline in the percentage
of companies offering in-company training recently. Given the low value perception of vocational
education in India, the introduction of large-scale changes in the education system is a difficult task.
However, the Indian government has tried to change this. Policy makers’ increasing awareness of the
issue has begun to promote an integrated approach to theory and practice at schools and worksites.
34
Role of the government
and social partners
Apprenticeship Act in
India
Partnership between
government and
economy
Chapter 3
3.3.2 Vocational Training as a Task to be Carried out in Private-Public Partnership
The regulatory framework of the dual system in Germany evolved over time in response to the
changes in the economy and in the needs of the labour market. The core structure of the vocational
training system is the continuous alternation between training in vocational schools and training
in companies. The public-private partnership between the different government levels and social
partners in Germany works well in terms of curriculum-building, certification and funding. The
Ministers of Education and Culture of the states (Länder) cooperate in a Standing Conference (KMK)
to ensure a certain measure of codifying skills, standards and curricula at vocational schools along
the lines of the training regulations of the Government and the Institute for Vocational Education
Training (BIBB). The latter coordinates across regions and locations. It is worth noting that the
various stakeholders, including the employers’ associations and trade unions are partners in the
policy governance of BIBB and thereby ensure that their requirements are met. The entire system
of VET is governed by a well-coordinated institutional legal mechanism. This has historically been
the case and was further strengthened by the VET Act (BBiG) from 1969, which has subsequently
been revised. Responsible actions of all participants in the system are built on the foundation of a
long-term welfare objective. This generates harmony among various stakeholders on the issue of
modernisation of vocational training on the basis of technical, economic and social developments.
In India, there is neither continuous alteration between vocational schools and companies nor
is there any well-working systematic mechanism that ensures coordination between different
government levels, social partners or other stakeholders. There is the Apprenticeship Act (1961),
but its implementation leaves much to be desired. An institutional mechanism that ensures
coordination between public and private actors as well as between different levels would be
desirable in the Indian context as well.
3.3.3 Joint Funding
The most desirable element of the German dual system is the partnership between government
and economy in sharing the vocational training cost. In Germany, the government and the
business community contribute in different ways to financing vocational training. It has recently
been reported that the German government contributes around 20 per cent of the total costs of
vocational training; the bulk of the cost, at around 80 per cent, is contributed by private entities.
As practical training takes place on private work sites, it is simultaneously a cost-sharing and
curriculum-design mechanism. The private sector also contributes to codifying skills processes,
standardisation and curriculum design. Furthermore, the private companies have self-governing
bodies (e.g. Chambers that cater to a single industry) to take care of organisation, inspection and
supervision of vocational training in private enterprises. Private enterprises directly benefit from
providing vocational training. The business community in Germany sees financing vocational
training as an investment rather than an expense. The money spent by companies is offset by the
35
Situation in India
Integration of theory and
practice
Institutionalised form of
cooperation
Cost sharing
Chapter 3
increased productive contributions of their trainees and other factors that generate benefits for the
respective business. This has also been quoted as one of the prime reasons why Germany leads
other European countries in terms of industrialisation.
While public-private participation in Germany has been capable of meeting skills requirements
through cost sharing, India has been averse to such partnerships until recently. For a long time,
there had been no move from the government to persuade the private companies to share the cost
of training; nor had the private companies shown any wish to work with each other in terms of
cost sharing. There has been some development recently during the 11th Five-Year Plan period in
the form of Institutional Management Committees for governmental Industrial Training Institutes
(ITI), on which the local private industry is represented. However, as Mehrotra (2014 forthcoming)
indicates, experience with this PPP-model has been mixed.
3.4 Final Remarks
There are wide differences in practice between VET in Germany and India. However, there are
many lessons that India could learn and adopt from the German dual system.
First, Germany uses the dual system and the dual principle, organised in such a way that formal
theoretical knowledge is provided in vocational schools run by the state, while practical knowledge
is acquired at the workplace. The Indian VET lacks this kind of integration of theory and practice
and hence requires a redesign of its VET to create a theory-practice continuum among classrooms
and worksites, approximating Euler’s notion of the dual principle.
Second, vocational education and training is based on a well-coordinated system where all relevant
actors are involved. In India, such an institutionalised-legalised form of cooperation is missing.
Curricula are developed solely by the government without any participation of employers or a large
number of stakeholders. Coordination between regions is weak. Without a coordinated effort by
public and private actors, it is difficult to create a skilled manpower that meets the demand of the
Indian industry and ensures comparability of acquired skills.
Third, in Germany, companies contribute the lion’s share of the costs of vocational education
and training. In India, companies are rather reluctant to contribute to funding of vocational
education and training. In the eyes of many companies, training activities should be funded be the
government alone. Funding of training activities is not seen as an investment, but as an expense.
In the end, companies are the main beneficiaries of a skilled workforce, however, since more
qualified manpower can increase their economic productivity.
36
Overview of the chapter
Two forms
Cooperation of ministries
Chapter 4
Chapter 4
Adapting the Elements of the German VET System to the Indian Situation
In this chapter, we give a brief overview of the Indian system with its strengths and weaknesses and
highlight the need for a major overhaul of the system. We also discuss elements of the dual system
which could be integrated into the Indian system with a focus on Euler’s approach. Furthermore,
we present ‘best practices’ in India and abroad. Section 1 provides an overview of the Indian VET
system. Section 2 examines what needs to be done in the Indian VET situation to guarantee more
practical experience and work-based learning. In Section 3, we address the question of how best
to involve companies in administration of the Indian VET-system and in the design of curricula
for individual professions. Section 4 discusses how to involve companies in the funding of VET
in India, how cost-sharing between governments and business may work out and how companies
could be motivated to accept cost sharing.
4.1 Vocational Education and Training (VET) in India
One must distinguish between two forms of vocational education. Within the formal education
system, vocational education in India usually starts after secondary school level, and is offered
at school level in 11th and 12th grade. Outside of the school system, vocational training takes
place in institution-based training programmes. In the latter, the period of training for various
trades varies from six months to three years. Entry qualification varies from 8th to 12th grade,
depending on the requirements of training in different trades. Vocational training is mainly
provided through government and private Industrial Training Institutes/Industrial Training
Centers5 and polytechnics. While the vocational education within the formal school system lasts
three years if begun in the 11th year, vocational training lasts for one to three years depending
on the chosen trade. The core responsibility of running vocational education and training in
India lies with the Ministry of Human Development (MHRD) and the Ministry of Labour and
Employment (MoLE).
As in many other developing countries, the two ministries – the MHRD and MoLE with whom
the core responsibility of coordinating the VET lies – are often badly coordinated.6 The MHRD
controls the vocational higher education including polytechnics and graduates in engineering
through the All India Council for Technical Education (AICTE). The AICTE prepares curriculum
design, certification and standardisation of syllabuses. It also monitors the entire vocational higher
educational structure. The ministry also controls vocational education in the secondary schools
5 Industrial Training Institutes (ITI) are training providers established by the government, whereas private ITIs are also training providers but managed by private players on a self-financing basis. These private ITIs are sanctioned and regulated through the Craftsman Training Scheme (CTS) by Directorate General of Employment & Training (DGE&T), MoLE 2009, 2011; also see Adams 2011; Jamal and Mandal 2013.
6 This was in evidence for almost two years (2011–12) in respect of the competing claims by the two ministries in regard to a qualifications framework for VET.
37
ITI & NCVT
Training schemes
National Skills
Development Agency
Chapter 4
through National Council for Education Research and Training (NCERT) which prepares curricula,
certification, etc. for vocational education at secondary school level.
Similarly, the Ministry of Labour and Employment (MoLE) regulates and monitors the lower end
of vocational educational training such as the ITIs through the National Council for Vocational
Training (NCVT). The NCVT is mandated to design, develop and maintain curricula and monitor
ITIs across the country. The same ministry also regulates apprentice programmes for those who
graduate from ITIs and others through its Craftsmen Training Scheme (CTS)7.
After successful apprentice training, the trainees are expected to appear before the All India
Trade Test (AITT). The NCVT provides the certificates for those who pass these exams. Another
training scheme under the ministry is the Skills Development Initiative Scheme (SDIS). The
scheme is targeted at workers seeking skill upgrading or certification of skills acquired informally
through courses run by Modular Employable Skills. The trainees who graduate from such training
programmes receive certificates from NCVT. The relevance of either joint curriculum building or a
joint certification scheme with the involvement of various stakeholders has only been determined
very recently in India.
A third component of the regulatory framework came into being with the establishment of
the Prime Minister’s National Council on Skill Development in 2009. This body later (in June
2013) became known as the National Skills Development Agency with autonomous status and a
parliament mandate. The agency is expected to coordinate and harmonise the skill developments
in the country, and to foster cooperation between the government and the private sector in order
to meet skills needs. It is also expected to anchor the National Skills Qualifications Framework
(NSQF) and facilitate the establishment of professional certifying bodies in addition to the existing
ones. The governance structure of the Indian VET as a part of the overall education system is
depicted in the following Figure 6:
7 The main objectives of the CTS are to provide skilled craftsmen to industries according to their requirements, as well as to provide self-employment opportunities to educated youth by giving them industrial training. The programmes under CTS focus on industrial trades and are operated by ITIs, both public and private. After completion of the ITI course, students appear for a test conducted under the aegis of the National Council for Vocational Training (NCVT) and successful students receive a National Trade Certificate.
38
Chapter 4
Source: World Bank 2007
Figure 5: Education and Training System in India
General SecondaryBoard Exam Certificate
Elementary Education Certificate
Senior SecondaryBoard Exam Certificate
University (undergraduate)3–4 years degree
Masters program
Vocational secondary
Advanced training Inst. Central training Inst.Foreign training Inst.
Doctorate programs
ITIs 1–2 yearscraftsman
DGET certificate
Apprenticeship 2–4 yearscertificate
Polytechnics3 yearsdiploma
Engineering colleges
Engineers Technologists
Scientists
Technicians
Craftsman
Workers without specific skills
VocationalTechnicalAcademicAge Grade
19–21
17–18 11–12
15–16 9–10
6–14 1–8
39
Chapter 4
Source: Institute of Applied Manpower Research
Figure 6: Technical and Vocational Education System in India
Note: MHRD regulates polytechnics and school-level vocational education while MOLE regulates Industrial Training Institutes and Vocational Training Providers
Prime Minister
National Skills Development Agency
19 ministries and
departments
Ministry of Human Resource
Development
All India Council for Technical
Education
Polytechnics
National Council of Education Research and
Training Education
School level vocational education
National vocational education
qualification framework
National policy on skill development
Sector skill councils
National Skill Development Corporation
National Vocational Qualification Framework
Craftsman Training Scheme
Directorate General of
Employment and Training
Ministry of Labor and
Employment
Industrial training institutes
Vocational training providers
Skills Development Initiative Scheme
Policy/initiatives
Institutions, ministries/departments
40
Chapter 4
Apprenticeship Training
Scheme
Craftsman Training
Scheme
Skills and demands
of industry
Deficiencies of
Indian VET
The Apprenticeship Training Scheme (ATS) of the MoLE aims to provide training facilities to as
many people as possible in different trades in various enterprises under the Apprenticeship Act of
1961. The ATS and the training of skilled workers under the Advanced Vocational Training Scheme
(the fields of Industrial, Medical and Consumer Electronics, and Process Instrumentation) are
implemented jointly by union territories/state governments and the central government. There
are four categories of apprenticeship trainees, namely trade graduate, technician, and technician
(vocational) apprentices.
To date, 254 groups of industries are covered under the Apprenticeship Act of 1961, with about
31,587 enterprises employing apprentices (MoLE 2011–12). At the moment, apprenticeships are
available in 252 trades (Mehrotra et al forthcoming). The main objectives of the Craftsman Training
Scheme (CTS) are providing skilled craftsmen to industries according to their requirements and
providing self-employment opportunities to educated youth by giving them industrial training.
The programmes under CTS focus on industrial trades and are operated by ITIs, both public and
private. Successful students receive a National Trade Certificate (Mehrotra et al forthcoming). The
number of ITIs/ITCs has increased tremendously in recent years, though it is still not enough to
fully cover demand.
As described, the system in India faces challenges. A modified version of some elements of
the German dual model could help to overcome problems in India with respect to the lack of
combination of theory and practice, cooperation between public and private actors and joint
funding.
4.2 Alternating Learning Situations in Accordance with the Dual Principle: Combining Theory and Practice in the Indian VET
A number of problems affect the vocational education and training system in India. Within the
formal structure of skills development, graduates from ITI/ITCs have difficulties in finding a job
because their skills do not meet the demands of the industry. Polytechnics also face major problems
such as the non-availability of courses in new and emerging areas, inadequate infrastructure and
obsolete equipment, inadequate financial resources, inadequate or non-existent state policies for
training and retraining of faculty and staff, inadequate industry institute participation, lack of
research and development in technician education, and antiquated curricula (Goel8). The pillars of
the German dual system – practical training in the workplace combined with theoretical learning
in vocational schools – which also form the critical elements of Euler’s duality principle should be
incorporated into the Indian VET system.
The Ministry of Human Resources and Development (2011) has identified the following reasons for
the poor performance of Indian VET:
8 http://www.unevoc.unesco.org/up/India_Country_Paper.pdf , accessed in October 2013.
41
Chapter 4
National Skills
Development
Corporation
International examples
(1)Training versus education: Vocational training is treated as distinct and separate from
general education. However, to work in a professional environment and do many jobs effectively,
one needs to have a certain minimum of both, i.e. theoretical knowledge of systems as well as the
practical (skills training). It is seen that graduates of ITIs and even private vocational education
are given certificates distinct from those of general education, making these dead ends.
(2)Industryandjoblinkages: The vocational training institutes, which aim to prepare students
for jobs, often do not have close links to industry and understanding of employers’ needs. Hence,
the training provided is based upon outdated perceptions of what is needed or on a centralised
decision making process.
(3)Redundantandinadequatecurriculaandfaculty: The curriculum has remained static for
years, not reflecting current requirements. Moreover, quality and robustness of curriculum varies
and often leads to uneven delivery depending upon the teacher’s interpretation and capability.
Facilities and labs are behind times, resulting in ill-equipped graduates.
(4)Poorquality: Lack of strong teachers and pedagogy as well as facilities lead to uneven quality.
It is argued that the teachers need to have regular refresher training courses in theory and practice.
The attempt at linking theory and practice has been successful to some extend in recent years with
the formation of the National Skills Development Corporation (NSDC) in 2010, with participants from
relevant central government and state government ministries, as well as private sector representatives.
First, it is meant to proactively catalyse the creation of quality vocational training providers (VTP) in
the private sector. Second, it is intended to be an enabler for building support systems required for
skills development. Such support systems include Sector Skills Councils (SSC)9, quality assurance,
information systems, training trainers and setting standards. A few of the SSCs are also liaising with
international organisations such as the European Union, International Labour Organisation, the UK-
India Education and Research Initiative, etc. with the objective of introducing best practices in India.
Regarding the question of linking theory and practice, India can also learn from foreign countries
which have adapted these elements of the German dual system. With support from the German
Technical Cooperation (GTZ), Egypt has introduced the Mubarak Kohl Initiative – Dual System
(MKI-DS) which was targeted at students from low-income families (Adams 2011). In this project,
students spent two days each week in school learning theory and four days in a factory where they
acquired practical skills. In contrast, students in traditional secondary technical schools in India
spent six full days in school for theory and practice. In order to create a theory-practice continuum
in the Indian context, the central and state governments should be ready to give up their monopoly
over designing modules and codifying skills. The participation of various stakeholders is to be
ensured in the administration of the Indian VET-System.
9 SSCs are employer-led and state-sponsored organisations that cover specific economic sectors and are meant to complement the existing vocational education system. They directly address the skills gaps by conducting research, improving the delivery mechanism and assuring quality in order to boost the skills of their workforce and improve their productivity (http://www. nsdcindia.org/pdf/approach-paper-ssc.pdf).
42
Public-private
cooperation in India
BBiG in Germany
Chapter 4
4.3 Vocational Training as a Task to be Carried out in Private- Public Partnership: Enhance Public-Private Cooperation
The situation in India is quite different from the German model that carries out vocational education
and training in a public-private partnership. First, the design of curricula and preparation of
modules is carried out by the Ministry of Human Resources Development (MHRD) without any
participation from the large number of stakeholders who are directly and indirectly linked with
the vocational education system. Second, there is no consultation with the actual employers with
regard to the content and standard of the curricula to be followed in the vocational schools. There
has already been a proposal in this direction. The Federation of Indian Chamber of Commerce
and Industries (FICCI) has already taken over many Industrial Training Institutes (ITIs) in India
and has expressed interest in running many more. Industries have been advised to take over ITIs,
redesign curricula and update the teaching materials in light of their skills needs. There has also
been an attempt to codify national occupational standards (NOS) laid down by employers: the
performance standards that individuals must achieve when carrying out functions in the workplace,
together with specifications of the underlying knowledge and understanding. This task is currently
being tackled in India, with the Sector Skills Councils (SSCs) taking the lead with responsibility
for bringing together all stakeholders to achieve the common goal of creating a skilled workforce
for the domains they represent under the overall supervision of the National Skills Development
Corporation (NSDC), formed in 2008.
There are also other international examples that could serve as a role model. German chambers
engage in self-regulation. SSCs have to learn from them and adopt a method of regulating
themselves towards the goal of preparing curriculum design, certification and standardisation of
syllabus for which the local industry must be encouraged by the central and state governments to
the introduction of new courses relevant to the industry. The government should also make sure
that private companies actively participate in the curriculum-building process. Joint certification
is equally important, made possible in Germany through the Vocational Education and Training
Act (BBiG) which enables joint certification of skills and competencies. This strongly suggests the
necessity of passing a VET Act for joint certification as all certification in India has been done by
government so far without any private participation.
Box 3: Tata Motors
The vehicle manufacturing complex produces various ranges of commercial vehicles, including
the Indigo and Indica passenger vehicle models. Tata Motors established its Pune unit in 1966
to manufacture commercial vehicles, which was later expanded to produce passenger cars as
well. The unit has the most versatile tool-making facilities and vehicle manufacturing complex
in the subcontinent. It is currently engaged in the design and manufacture of sophisticated
press tools, jigs, fixtures, gauges, metal pattern and special tools.
43
PPP-initiatives in India
Chapter 4
The plant has about 6000 employees, 90% of whom are blue collar workers. It has a fully
equipped industrial training centre on its premises and most of the workers are the product
of this training centre. It has a long tradition of investing in vocational training and capacity
building in the country. For instance, at the moment, it has adopted about 137 ITIs across
India. They are adopted under Public Private Partnership (PPP) models. According to this
model, Tata Motors provides modern infrastructure for those adopted ITIs and helps in
designing curricula according to the needs of the industry and in training their trainees. It
also facilitates new vocational courses. For instance, some of the courses it has introduced
include Motor Mechanic Vehicle, Diesel Mechanic Trade, Fitter and Automotive Electrician.
These courses were introduced to ensure uninterrupted flow of skilled workforce to its
large scale network based dealers placed across India.
TrainingCentrefacility: The training centre is designed on the model of an ITI. It has
about 23 qualified trainers coming from various disciplines. The centre has fully equipped
instruments and other infrastructure. Trainees are given a stipend of Rs 4,500 per month.
Boarding and lodging facilities are available on the company premises. The trainees take
theoretical classes in their respective trades and experiment with those concepts in the
practical sessions in the workshop. At times, they are taken to shop floors in the factory
for on-the-job training.
4.4 Joint Funding: Involving Companies in the Funding of VET in India
In contrast to the German experience, the private business community’s involvement in vocational
training is very low. In particular, its contribution to financing vocational training is next to none.
Pre-service technical and vocational training and education (TVET) have been financed by the state
through general tax revenues. Euler’s dual system involves partnership between governments
and private enterprises. This is desirable and replicable in the Indian context, provided that a
concerted policy framework is developed as in the case of other best practices abroad.
There have been a few initiatives in India for collaboration on the PPP model (public private
partnership) with the formation of the NSDC with 51 per cent of its equity by private sector and
the rest by the government. It has been funding the creation of Vocational Training Providers10
in the private sector by lending capital in the form of equity and loans. In order to financially
support NSDC, a National Skills Development Fund was developed as a Trust under the Indian
Trusts Act with an initial corpus of Rs 9,951 Million. The NSDC has so far approved 18 SSC
proposals for funding which cater to the requirements of 18 identified high growth sectors
including manufacturing and services. There has also been an attempt to promote the adoption
10 A Vocational Training Provider could be any agency/institution including ITIs desiring to deliver vocational training based on National Occupation Standards as crafted by a Sector Skills Council. VTP can affiliate one or more courses to a SSC. Thus, there can be multiple affiliations of a VTP with an SSC. VTP is partially funded by NSDC.
44
International examples
Training expenses as an
investment
Chapter 4
of existing ITIs by the business community. The members of the Federation of Indian Chamber
of Commerce and Industries (FICCI) have already taken over many Industrial Training Institutes
(ITIs) in India and have expressed an interest in running many more (see box 3 on Tata Motors).
It is also worth noting that the existing ITIs were upgraded under the scheme of the Vocational
Training Improvement Project with support of the World Bank. Similarly, about 1,400 ITIs were
upgraded in the Public Private Partnership (PPP) mode (Policy Overview 2011). Their performance
is pending review.
As Mehrotra and Ghosh (2012) have suggested, the PPP funding model could take other forms as
well: about 62 countries around the world have already put some form of training levy in place.
Some large economies, such as Brazil, have had a training fund for over half a century. South Africa
has had one for at least ten years. The proposal by Mehrotra and Ghosh (2012) to set up a National
Training Fund could take one of several forms such as pre-employment training fund, Enterprise
Training Fund, Equity Training Fund, etc. The specific design depends on the active involvement
of the private business community in financing such skills development initiatives within an
institutional and legal framework. As Mehrotra and Ghosh (2012) pointed out, the beneficiaries of
NTF should include both organised and unorganised enterprises. It is the large and medium-sized
organised enterprises who would contribute the major share of the NTF. The unorganised sector,
however, will also need to benefit from the disbursements of the fund.
Companies in India need to see training expenditure and the cost of sharing expenditure as an
investment rather than an expense, as is the case of Germany, China and Egypt. The money spent
by companies is offset against the increased productive contributions of their trainees and other
factors that generate benefits for the respective business. This also has been quoted as one of
the prime reasons why Germany leads other European countries in terms of manufacturing, a
trajectory that India will need to emulate if India is to become a major manufacturing nation.
Box 4: Sino-German Automotive Vocational Education Initiative
The Sino-German Automotive Vocational Education (SGAVE) project was initiated by
German companies in 2011. The project was commissioned by the Federal Ministry of
Economic Cooperation and Development of Germany in collaboration with the Ministry
of Education of the People’s Republic of China, supported by German car manufacturers
such as Audi, BMW, Daimler, Porsche and Volkswagen. These private partners cover about
50 per cent of the project cost.
45
Need for private
participation
National Skills
Development Agency
Involving the private
sector
Chapter 4
4.5 Final Remarks
India not only lags behind Germany in developing an integrated VET system but also lacks a
coherent strategy to bridge the gap. Unlike Germany, the Indian vocational educational system
does not provide much scope for the entry of private companies into the area of vocational
education unless a legislative basis is provided. Since the German chambers self-regulate, Sector
Skills Councils (SSCs) must learn from them and adopt a method of regulating themselves towards
the goal of preparing curriculum designs, certifications and the standardisation of syllabuses. This
shows that India must pass a VET Act for joint certification, as all certification has been performed
by the government without any private participation.
The significant progress in Indian vocational training and skills development came out of the
formation of a National Skills Development Agency (NSDA), an autonomous body with the mandate
of the Indian parliament. It is expected to coordinate and harmonise the skills development efforts
of the government and the private sector to achieve the skills requirement of the economy. With
the support and guidance of NSDA, the National Skill Development Corporation (NSDC) was
established in the Public Private Partnership (PPP) mode with the intention of bringing in private
sector initiatives into skill development. About 51% of the NSDC’s equity are held by the private
sector and 49% by the government. The funds are channelled to training not as grants but instead
as loans and equities. Hence, the funds are “re-circulating”, which should perhaps be treated as
one of the strengths of the recent reforms of the Indian VET. It is equally important to develop
imaginative schemes such as National Training Funds by charging training levies, particularly on
medium and large companies; small companies should also be allowed to access such funds.
The NSDC is expected to involve the private sector and create capacities for skills development in
various sectors, including the high growth sectors, through appropriate mechanisms with active
support of private players including employer organisations like FICCI and CII. It has identified
21 high-growth sectors and has plans to set up Sector Skills Councils (SSCs) for these sectors. For
some sectors, the SSCs have already been set up. SSCs are industry-led and supported bodies are
expected to support the existing vocational education system for the Industry Sector in meeting
the skills needed in each sector. While the question of how to motivate the companies to participate
in the Indian VET has been a subject of discussion for several years and some progress has been
made, there is still much work to be done in this area.
46
Skills gap in India
Differences between
Germany and India
Limits of adaptation
Assuring duality principle
Chapter 5
Chapter 5
Final Remarks and Recommendations
India adopted a National Skills Development Policy in February 2009 which aims to guide skills
development strategies and initiatives of all stakeholders and which has set the ambitious target
of skilling 500 million people by 2022 (MoLE 2009)11. In another estimate (Mehrotra et al 2013),
the number of people to be skilled by 2022 in the working age group comes to around 291 million.
The common concern expressed by policy planners and industrialists is that there is a pronounced
‘skills gap’ in India both in terms of quality and quantity, and current vocational education and
training infrastructure is not geared to meet industry requirements (CII report as cited in MHRD
2011). This necessitates a radical restructuring of VET in India with a long term perspective.
The differences in the structure of the economies of Germany and India, the stage of industrialisation,
and the expanding size of informal sector(s) should also be taken into account when thinking
about adopting the favourable elements of the German dual system. This is particularly so because
the Indian education system entails a certain degree of path-dependency which does not provide
seamless mobility between vocational and general education. Neither does India have a Vocational
Education and Training Act like that of Germany or China. The organised segment of Indian
enterprises employing more than ten workers accounts for 78 per cent of all value-added in the
non-agricultural sectors. However, they employ only 18 per cent of all non-agricultural workers. On
the other hand, the unorganised enterprises (which are very small in size) account for only 22 per
cent of value-added in output, but employ 82 per cent of all non-agricultural workers. This shows
that the structure of Indian industries is very different from that in Germany.
Given this background, it is important to understand the specific aspects that need to be
considered when adapting certain elements of the German dual system in India. Our primary
survey was mainly of companies that are in the organised segment of manufacturing industry. We
have explored those elements in this report – combining theory and practice, joint participation
in curriculum-building and certification and more importantly, joint funding – between the private
companies and the government. It has turned out that Germanys dual system by and large offers
great insights for reforming VET in India. We have also found that India has already begun
reforming its VET system, though it is too early to assess the success of these reforms.
Lessons to be learned and recommendations
In India, the practical component of vocational education and training is mostly missing. The
duality principle should be made mandatory in India. Germany can serve as a role model in this
11 MHRD estimates that approximately 75 to 80 million jobs will be created in India over the next five years. 75% of these new jobs will require vocational training to enhance employability prospects (MHRD 2011). Even if this 75 million estimate is overly optimistic, given that new non-agricultural jobs created between 2000 and 2012 have been only 7.5 million per annum on average, the fact remains that new jobs require skilled persons, while those already in the labour force also need access to VET.
47
Enhancing public-private
partnerships
Developing a
comprehensive VET Act
Joint funding: creating a
National Training Fund
Chapter 5
respect. Practical training must be built into the Vocational Education and Training system for
which the state and industry associations should play a key role.
Both the government and private companies should come to a consensus regarding the standards
to be followed with respect to the structure and content of courses and how they should be made
integral to practical training. A closely related issue is the relevance of joint certification. Industry
must be on board during certification as well, since this is where the major employers are located.
Unless there is practical training at the work sites combined with classroom teaching in schools,
the private sector would not be able to participate in joint certification. To ensure the organic
involvement of private companies, the government must understand how the duality principle
could prove to be an agent for change. It will also promote transparency of qualifications and
facilitate learner mobility between different qualifications, thus encouraging lifelong learning.
In India, the National Vocational Education Qualification Framework (NVEQF) developed by the
Ministry of Human Resource Development (MHRD) provides a descriptive framework for linking
various qualifications to set common principles and guidelines for a nationally recognised
qualification system. This would cover schools, vocational education and training institutions,
technical education institutions, colleges and universities. The MHRD, in alliance with the state
governments, have already initiated the NVQF with more than 1,000 VET schools. However,
although the Automotive Sector Skills Council (SSC) has been preparing National Occupation
Standards, industry participation is nearly absent from curriculum-building. To change this,
the SSC must be activated across sectors with the support of the National Skill Development
Corporation (NSDC). It is encouraging to see that a SSC has already been set up in the automotive
sector and the Central Institute of Vocational Education Bhopal has developed the modules and
standards; yet, industry participation in this sector is still very low.
The regulatory system in Germany with involvement of the Federal, regional and local governments
and the various stakeholders offers lessons for the development of an institutionally and legally
embedded VET in India. An Indian VET Act can be passed along the lines of the German VET Act
which would integrate governance strategies. India is in urgent need of a legally embedded VET
system such as the Vocational Education Act (BBiG) in Germany. It would be particularly helpful
in mandating private-sector participation in training. It could also provide legal sanction to the
introduction of joint certification by government and private institutions, which is another feature
of Germany’s VET system. Such certification would facilitate the placement of students/trainees
in enterprises, as the latter would have greater confidence in the competencies of trainees whom
they have certified.
Establishing a National Training Fund for skills training is seen as a way to generate funds from
private players for vocational training. This has also been suggested in the 12th Five-Year Plan of
the Planning Commission (2013). The German construction sector has this kind of a sectorial fund
to which all companies must contribute. Its resources are returned to construction enterprises to
enable them to provide training. On a national level, for instance, the National Skills Fund (NSF) of
South Africa serves as an example where payroll levies are directed towards including all sections
48
Chapter 5
Training the trainers
Creating cluster-based
training for small and
medium-sized companies
of society. Twenty per cent of the training payroll levy on formal sector enterprises is sent directly
to the NSF and 80 per cent go to sectorial authorities (see Mehrotra and Ghosh 2012). Similarly,
about 62 countries around the world have already put some form of training levy in place. Some
large economies, such as Brazil, have had a training fund for over half a century. South Africa has
had it for at least ten years. Mehrotra and Ghosh (2012) have pointed out that the levy for NTF in
India may start from the organised manufacturing sector since it accounts for about 78 per cent
of the total manufacturing output. Large as well as small and medium-sized companies should
contribute to the fund. Given the fact that the organised sector accounts for only 15 per cent of
the total manufacturing employment in the economy (Mehrotra et al, 2012), while the remainder
is contributed by the informal sector, the authors have suggested the development of a policy
framework to decide which of the companies are to be included in the levy framework depending
on the turnover and employment numbers. Beneficiaries of the NTF should include both organised
and unorganised enterprises. The training levy funds should also be used for funding students
from poorer backgrounds who would be unable to bear the opportunity cost of undertaking training
first before entering the labour market. This should also motivate parents to send their children to
VET schools. The National Skill Development Corporation, the Federation of Indian Chambers of
Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) should cooperate
with think-tanks working on employment/employability issues to develop the design of a NTF for
India to address the long-term problem of skills shortages.
Teacher training is a strong component of the German dual system to be adopted in India. India’s
VET faces a serious shortage of teachers. The problem that teachers themselves have had little
or no practical industry experience is even more serious. This is the opposite of the situation in
Germany or China. Local industry must contribute, for example, by offering trainers with industry
experience to vocational schools to introduce new courses relevant to the needs of local industry.
Cluster-based training is another possibility for small companies to get a sufficient number of
trained personnel. For instance, they could develop a cluster-based training approach where a
few companies from a particular area can jointly generate training programmes through cost
sharing. Companies should be convinced of the fact that either a common platform or a sectorial
approach – with training based on clusters – would be a better than the current practice of in-
house training or competing for skills on the open labour market (22 companies in our primary
survey expressed interest in inter-industry collaboration). In this context, the two variables of
incentives and regulations become important. One of the advantages of cluster-based and location-
specific industry-level decision making is that it is easy for companies to effectively assess the
local demand and supply of manpower to be trained. Second, it is easy to bring the entire training
system under a locally governed legal framework. The Micro, Small and Medium Enterprises
Ministry of the central government could facilitate this, even though the local companies should
take the lead in such institutional arrangements.
49
Involving employers
association and large
companies in upgrading
training institutes
Integrating skills training
in the Companies Act
Chapter 5
In certain sectors, such as engineering, the employers’ association has taken particular interest in
advancing training programmes. The Federation of Indian Chambers of Commerce and Industry
(FICCI), has adopted several Industrial Training Institutes and has expressed interest in taking
over more of them. It is true that they benefit by way of free capital cost in the form of buildings,
machinery, etc. Given the fact that they run efficiently and are more widely accepted, it is a policy
which could be encouraged. In this context, we would recommend that there should not be any
discrimination between Indian and foreign companies, as the public good is accessible for all the
companies. Large individual companies can also adopt ITIs. Tata Motors, for instance, has adopted
nearly 137 ITIs in the country. This model has turned out to be successful in terms of financial
assistance, training orientation and diversification. Infosys and Bosch offer good practices for large
companies. The PPP model implicit in the above cases could be modified in a similar way to be
embedded in the larger process of modernisation of the economy.
The Indian Companies Act (2013), as ratified by parliament, prescribes an expenditure of two per
cent of profits on Corporate Social Responsibility activities in their respective areas of operation.
Though the new regime would replace the 57-year old Indian Companies Act of 1956 and usher
in more transparency in corporate bodies in addition to creating a new business environment
for growth, the issues of either skill training or VET reforms are not adequately addressed. It
would be desirable to develop a “negotiated corporate social responsibility” (Raman 2010) and
thereby neutralise whatever adverse impacts the PPP model is likely to have. The experiments of
Tata Motors, Infosys, SAP and Bosch also signal the potential of modified forms of public-private
partnerships and corporate social responsibility.
50
Bibliography
Bibliography
Adams, Arvil V. (2011), The Role of Skills Development in Overcoming Social Disadvantage,
Background paper prepared for the Education for All Global Monitoring Report 2012,
UNESCO.
Agrawal, Tushar (2012), Vocational education and training in India: challenges, status and labor
market outcomes, Journal of Vocational Education and Training, Vol. 64, No. 4, 453–474.
Barabasch, Antje, Huang, Sui & Lawson, Robert (2008), Planned policy transfer: the impact of
the German model on Chinese vocational education compare: A Journal of Comparative and
International Education, http://www.tandfonline.com/loi/ccom20.
Bundesministerium für Bildung und Forschung (BMBF 2003), Berufsausbildung sichtbar
gemacht, Bonn.
Bundesministerium für Bildung und Forschung (BMBF 2011), Dual Training at a glance, Bonn.
Carrero, Perez, Elena (2006), Reforming Technical and Vocational Education and Training in the
Middle East and North Africa: Experiences and Challenges, European Training Foundation,
Luxembourg.
Comyn, Paul (2009), Vocational qualification frameworks in Asia-Pacific: a cresting wave of
educational reform? Research in Post-Compulsory Education, Volume 14, Issue 3.
DGE&T (2011), Performance Evaluation of Industrial Training Institutes/Industrial Training
Centres (ITIs/Private ITIs), Ministry of Labor and Employment, Government of India.
Eichhorst W, Rodriguez-Planas N, Schmidl R, Zimmermann K F (2012), A Roadmap to Vocational
Education and Training Systems Around the World, IZA DP No. 7110.
Euler, Dieter (2013), Germany’s dual vocational training system: a model for other countries?,
Bertelsmann Stiftung, Gütersloh.
Evans, Stephen and Gerhard Bosch (2012). “Apprenticeships in London: Boosting Skills in a City
Economy”. OECD Local Economic and Employment Development (LEED) Working Papers
2012/08. OECD Publishing 2012.
Finegold, David and Wagner Karin (2002), Industrial and Labor Relations Review, Vol.55, No.4.
Goel V.P., Technical and Vocational Education and Training System in India for Sustainable
Development, http://www.unevoc.unesco.org/up/India_Country_Paper.pdf, October 2013.
IAMR (2010), The Challenges Facing Skill Development in India: An Issues Paper available at
www.iamrindia.gov.in.
International Network on Innovative Apprenticeship, Editors (2012). An Architecture for Modern
Apprenticeships – Standards for Structure, Organisation and Governance. 2012.
Jamal, T. and K Mandal (2013), Skill development mission in vocational areas – mapping
government initiatives, Current Science, Vol. 104, No. 5, 10th March.
Mehrotra S., A. Gandhi and B.K. Sahoo (2013), Estimating India’s Skills gap on Realistic basis for
2022, Economic and Political Weekly, Vol. XLVIII, No. 13, 30th March.
Mehrotra, S., Gandhi, A., Sahoo B. and Saha, P. (2012), Organised and Unorganised Employment
in the Non-Agricultural Sectors in the 2000s. IAMR Occasional Paper No.6/2012 available at
www.iamrindia.gov.in.
51
Bibliography
Mehrotra S. and D. Ghosh (2012), The International Experience with National Training Funds:
Lessons for India, IAMR Policy Brief No. 1, available at www.iarmindia.gov.in.
Mehrotra S., (ed.) forthcoming, India’s Skill Challenge: Reforming the Vocational Training System
to realize the Demographic Dividend, Oxford University Press.
IAMR (2013), Low Female Employment in a Period of High Growth: Insights from a Primary
Survey in Uttar Pradesh & Gujarat. IAMR, Delhi.
IAMR (2011). India Human Development Report. Oxford University Press, New Delhi.
Mehrotra S., Parida, J., Sinha, S., and Gandhi, A. (2013), Understanding India’s employment
trends, 1999–2000 to 2011–12, IAMR, Delhi.
MHRD (2011), Working Group Report on Secondary and Vocational Education, 12th Five Year
Plan 2012–2017, Government of India, New Delhi.
MHRD (2011), Working Group Report on Secondary and Vocational Education, 12th Five Year
Plan 2012–2017, Government of India, New Delhi.
Ministry of Labor and Employment (2011), Annual Report 2010–11, Ministry of Labor and
Employment, Government of India, New Delhi.
MoLE (2009), National Skill Development Policy, Government of India, New Delhi.
OECD (1994). Vocational Training in Germany: Modernisation and Responsiveness. Paris, OECD.
http://www.hk24.de/en/training/348086/duale_system.html
OECD, (1994), The Job Study, Paris: OECD.
Planning Commission, Government of India (2008), Eleventh Five Year Plan, Vol. 1, Oxford
University, New Delhi.
Raman, K. Ravi (2010), “Strange Bedfellows? Critiquing Corporate Social Responsibility”, in
Raman, K. Ravi and Ronnie D. Lipschutz, ed. Corporate Social Responsibility: Comparative
Critiques, Macmillan: Basingstoke and New York.
Singh M. (2012), India’s National Skill Development Policy and Implications for TVET and
Lifelong Learning, in Matthias Pilz (ed.) The Future of Vocational Education and Training in a
Changing World, Springer VS.
UNESCO, http://uil.unesco.org/fileadmin/keydocuments/LifelongLearning/en/
GlobalInventoryonNQFs_India_130509_final-final.pdf, accessed in October 2013.
Venkatram R (2012), Vocational Education and Training System (VET) in India, in Matthias Pilz
(ed.) The Future of Vocational Education and Training in a Changing World, Springer VS.
World Bank (2007), Skill Development in India: The Vocational Education and Training System,
Human Development Unit, South Asia Region, January.
52
About the Bertesmann Stiftung
About the Bertelsmann Stiftung
The Bertelsmann Stiftung promotes social change through project work that focuses on ensuring
society’s long-term viability. Working with a wide range of partners, the foundation wants to
identify social problems and challenges early on and develop exemplary solutions to address
them. We view ourselves as an initiator and driver of necessary reforms. We rely on knowledge
and expertise to stimulate lively dialogue on the most pressing issues of our day and provide
policymakers with new momentum.
Within the field of education at the Bertelsmann Stiftung, the Learning for Life programme
addresses career guidance in schools, school-to-work transitions, Germany’s dual vocational
training system and life-long learning. The foundation initiates and moderates discussions on
these issues, provides professional insight by way of expert opinions, and supports the exchange
of ideas on the international level.
The programme “Germany and Asia” of Bertelsmann Stiftung focuses on India and China. It
analyses developments in Asia and assesses their impact on Europe and Germany in particular.
Furthermore, it aims at fostering exchanges and dialogues in various issue areas and between
different actors from all sections of society.
53
About the Authors
About the Authors
Dr. Santosh MehrotraDr. Santosh Mehrotra is Director-General, Institute of Applied Manpower Research, the only
research institute of the Planning Commission, Government of India. He is in the rank of Secretary,
Government of India. From 2006 to 2009 he was first Head, Rural Development Division, and then
Head, Development Policy Division, Planning Commission. He was a lead author of India’s 11th
Five Year Plan (2007–2012), and also led the team on the India Human Development Report 2011.
He also held a three-year appointment at the Centre for Development Studies, University of Bath,
UK, as Parkin Visiting Professor. He is a human development economist, and his research interests
have spanned industry and trade issues, the impact of macro-economic policy on health and
education, labor economics and the informal sector, and the economics of health and education.
In addition to 7 books already published internationally, his forthcoming books include Policies
to Achieve Inclusive Growth in India (Cambridge University Press), Land Policies for Agricultural
Growth with Equity (ed.) (Sage), and India’s Skills Challenges, (ed.) (Oxford University Press).
Dr. Ravi RamanHaving completed fellowships and teaching assignments in various Universities in the UK, Ravi
Raman has recently joined IAMR as Director. He works on a range of themes such as informal labor,
business-state relations, corporate social responsibility, globalization and migration, education and
skill development. He is the author of Global Capital and Peripheral Labor (Routledge 2010/2012); and
the editor of Development, Democracy and the State (Routledge 2010/2012) and co-editor, Corporate
Social Responsibility (with Ronnie Lipschutz, Macmillan 2010). He has published widely in journals,
including the Cambridge Journal of Regions, Economy and Society, Review of International Political
Economy, Review of Radical Political Economics, Social Analysis and Business History Review.
Kalaiyarasan AKalaiyarasan A is an Assistant Director at IAMR. He is currently finishing a PhD in Economics
at the Jawaharlal Nehru University, in the area of industrialization and regional socio-economic
disparities in India. He has worked as a Research Associate with the Punjab Governance Reform
Commission and also with the National Council of Applied Economic Research. His current
research areas include skill and employment, education policy and research, special economic
zones and regional socio-economic disparities.
Neha KumraNeha Kumra is an Assistant Director at IAMR. She holds a Master’s degree in Development
Economics from the University of Oxford. She wrote her post graduate dissertation on Child Labor
within the context of imperfect credit and insurance markets, and was awarded the Luca d’Agliano
prize for the best dissertation. Subsequent to completing her post-graduation, she worked as a
consultant with the International Labor Office (ILO) in Geneva. She also worked as a consultant
with the Oxford Policy Management and tutored an online course on New Economic Powers at the
University of Oxford. Further, she was part of the team which worked on the second India Human
Development Report released in 2011.
54
Annex
State, Region Company Year of estab-lishment
German, Indian, Joint Venture
Large, Small & Medium
Products Sector Employee Size (training staff in case of training centres)
In-House Training (Y/N)
Demand for Skill
Training Staff (No.)
Are you satisfied with current availability of skills ?
Deficiencies in Skill Devt and Training
Joint Funding (Y/N)
Inter-Industry Collaboration (Y/N)
Recommen-dations for Government
Karnataka, Bangalore
Continental Auto-motive Components (Pvt) Ltd
German Large As a supplier of brake systems, systems and components for pow-ertrains and chassis, instrumentation, infotainment solutions, tires, and technical elastomers
Automotive and auto-motive components
500 + Yes No Teaching quality It is possible. ACMA is picking up clusters and training
Curriculum
Karnataka, Bangalore
Continental Auto-motive Components (Pvt) Ltd
German Large Vehicle electronics Electronics 500 + Yes Yes No Teaching quality It is possible. ACMA is picking up clusters and training
Curriculum
Karnataka, Bangalore
Siemens Technology and Services
German Large Siemens Technology and Services Private Limited (STS) combines four units: Corporate Technology India, Siemens Corporate Finance and Controlling, Global Shared Services, and Siemens Management Consulting
IT 4500 Yes No Curriculum No Yes Industry participation
Karnataka, Bangalore
Festo Controls Pvt. Ltd
German Large Pneumatic and electric drive technology Electricals 422 Yes No 25 Yes Curriculum Yes Yes No
Karnataka, Bangalore
Baka Liftec Joint Venture
Large Manufacturer, importer, exporter, supplier and distributor of a premium range of Battery Operated Pallet Trucks, Battery-operated pallet trucks, battery-operated stackers, battery-operated counter-weight stackers, battery-operated die loaders and hydraulic hand pallet trucks, hebel rollers, scissor lift tables, etc.
Other 110 No No Industry exposure No No Industry participation
Karnataka, Bangalore
Tech Mahindra Indian Large Provider of solutions and services in the Information, Communica-tions & Technology (ICT) industry
IT 95.000 Yes Yes, Computer science
No Industry exposure No No Curriculum
Karnataka, Bangalore
WIPRO Indian Large Information technology, consulting and outsourcing company IT 15000 + Yes Yes They have a dedicated training programme.
No Teaching quality Yes Yes Regulatory structure
Karnataka, Bangalore
Kluber (Frudenberg) German Large Speciality lubricants Chemicals 160–170 Yes No Link between theory and practice
Yes Curriculum
Karnataka, Bangalore
SAP year German Large Provider of business software solutions IT Yes No Curriculum Yes Yes Industry participation
Maharashtra, Mumbai
Mahindra Auto and farms Ltd
Before 1947
Indian Large Manufacturing tractors Automotive and auto-motive components
10.000 Yes No No No Link between theory and practice
Management will decide
Yes Curriculum
Maharashtra, Mumbai
Eagle Burgman India Pvt.Ltd
1975 Indian Large Design and manufacture of mechanical seals and sealing systems for a wide array of equipment that include pumps, compressors, mixers, kneaders, agitators, turbines, etc.
Automotive and auto-motive components
1000 Yes No No Yes No Yes No No
Maharashtra, Mumbai
Uhde India Ltd 1977 Indian Large Manufacture of machines for chemical production Other 1.100 Yes No No No Curriculum Yes No Curriculum
Maharashtra, Mumbai
Emco Precima Engineering Pvt.Ltd
1994 Indian Small Marine electro-magnet. brakes and soft starters for all marine applications
Automotive and auto-motive components
14 No No No Yes Industry exposure No No Curriculum
Maharashtra, Mumbai
Kimo Electronics Pvt.Ltd
1999 Indian Small Motor soft starters, drive panels, etc. Automotive and auto-motive components
11 No No Yes No No No No
Maharashtra, Mumbai
Evonik India Pvt.Ltd 2003 Indian Small Engineering consultancy services, operation and maintainance ser-vice, IT solutions for the power sector, training and advisory services
IT 100 No No No Yes No No No Curriculum
Maharashtra, Mumbai
Connect Chemicals India Pvt.Ltd
Indian Small Import and export of water treatment chemicals, biocides, thermal and carbonless paper chemicals etc
Chemicals 9 No No No Yes No No No No
Maharashtra, Mumbai
Schuetz & Co. (India) Pvt.Ltd
Joint Venture
Small Manufacturers and exporters of active pharmaceutical ingredients (APIs) and their intermediates
Chemicals No No Yes No No No No
Chennai, Tamil Nadu
Siemens Ltd. German Large Engineering Electronics 330 Yes No No Curriculum Yes No Curriculum
Chennai, Tamil Nadu
SMR Automotive Systems India Ltd.
Indian Large Polymer processing, manufacturing of electro-mechanical systems Electro-mechanical 350 Yes Yes No No Link between theory and practice
No No Curriculum
Chennai, Tamil Nadu
JBM Auto Systems Pvt. Ltd.
Indian Large Manufacturing frames Automotive and auto-motive components
1700 Yes No 5 No Link between theory and practice
No Yes Curriculum
Chennai, Tamil Nadu
Suspa Pneumatics India Pvt. Ltd.
German Large Manufacturing of gas springs Chemicals 350 Yes No No No Curriculum Yes Yes Industry participation
List of Companies (survey)
55
Annex
State, Region Company Year of estab-lishment
German, Indian, Joint Venture
Large, Small & Medium
Products Sector Employee Size (training staff in case of training centres)
In-House Training (Y/N)
Demand for Skill
Training Staff (No.)
Are you satisfied with current availability of skills ?
Deficiencies in Skill Devt and Training
Joint Funding (Y/N)
Inter-Industry Collaboration (Y/N)
Recommen-dations for Government
Karnataka, Bangalore
Continental Auto-motive Components (Pvt) Ltd
German Large As a supplier of brake systems, systems and components for pow-ertrains and chassis, instrumentation, infotainment solutions, tires, and technical elastomers
Automotive and auto-motive components
500 + Yes No Teaching quality It is possible. ACMA is picking up clusters and training
Curriculum
Karnataka, Bangalore
Continental Auto-motive Components (Pvt) Ltd
German Large Vehicle electronics Electronics 500 + Yes Yes No Teaching quality It is possible. ACMA is picking up clusters and training
Curriculum
Karnataka, Bangalore
Siemens Technology and Services
German Large Siemens Technology and Services Private Limited (STS) combines four units: Corporate Technology India, Siemens Corporate Finance and Controlling, Global Shared Services, and Siemens Management Consulting
IT 4500 Yes No Curriculum No Yes Industry participation
Karnataka, Bangalore
Festo Controls Pvt. Ltd
German Large Pneumatic and electric drive technology Electricals 422 Yes No 25 Yes Curriculum Yes Yes No
Karnataka, Bangalore
Baka Liftec Joint Venture
Large Manufacturer, importer, exporter, supplier and distributor of a premium range of Battery Operated Pallet Trucks, Battery-operated pallet trucks, battery-operated stackers, battery-operated counter-weight stackers, battery-operated die loaders and hydraulic hand pallet trucks, hebel rollers, scissor lift tables, etc.
Other 110 No No Industry exposure No No Industry participation
Karnataka, Bangalore
Tech Mahindra Indian Large Provider of solutions and services in the Information, Communica-tions & Technology (ICT) industry
IT 95.000 Yes Yes, Computer science
No Industry exposure No No Curriculum
Karnataka, Bangalore
WIPRO Indian Large Information technology, consulting and outsourcing company IT 15000 + Yes Yes They have a dedicated training programme.
No Teaching quality Yes Yes Regulatory structure
Karnataka, Bangalore
Kluber (Frudenberg) German Large Speciality lubricants Chemicals 160–170 Yes No Link between theory and practice
Yes Curriculum
Karnataka, Bangalore
SAP year German Large Provider of business software solutions IT Yes No Curriculum Yes Yes Industry participation
Maharashtra, Mumbai
Mahindra Auto and farms Ltd
Before 1947
Indian Large Manufacturing tractors Automotive and auto-motive components
10.000 Yes No No No Link between theory and practice
Management will decide
Yes Curriculum
Maharashtra, Mumbai
Eagle Burgman India Pvt.Ltd
1975 Indian Large Design and manufacture of mechanical seals and sealing systems for a wide array of equipment that include pumps, compressors, mixers, kneaders, agitators, turbines, etc.
Automotive and auto-motive components
1000 Yes No No Yes No Yes No No
Maharashtra, Mumbai
Uhde India Ltd 1977 Indian Large Manufacture of machines for chemical production Other 1.100 Yes No No No Curriculum Yes No Curriculum
Maharashtra, Mumbai
Emco Precima Engineering Pvt.Ltd
1994 Indian Small Marine electro-magnet. brakes and soft starters for all marine applications
Automotive and auto-motive components
14 No No No Yes Industry exposure No No Curriculum
Maharashtra, Mumbai
Kimo Electronics Pvt.Ltd
1999 Indian Small Motor soft starters, drive panels, etc. Automotive and auto-motive components
11 No No Yes No No No No
Maharashtra, Mumbai
Evonik India Pvt.Ltd 2003 Indian Small Engineering consultancy services, operation and maintainance ser-vice, IT solutions for the power sector, training and advisory services
IT 100 No No No Yes No No No Curriculum
Maharashtra, Mumbai
Connect Chemicals India Pvt.Ltd
Indian Small Import and export of water treatment chemicals, biocides, thermal and carbonless paper chemicals etc
Chemicals 9 No No No Yes No No No No
Maharashtra, Mumbai
Schuetz & Co. (India) Pvt.Ltd
Joint Venture
Small Manufacturers and exporters of active pharmaceutical ingredients (APIs) and their intermediates
Chemicals No No Yes No No No No
Chennai, Tamil Nadu
Siemens Ltd. German Large Engineering Electronics 330 Yes No No Curriculum Yes No Curriculum
Chennai, Tamil Nadu
SMR Automotive Systems India Ltd.
Indian Large Polymer processing, manufacturing of electro-mechanical systems Electro-mechanical 350 Yes Yes No No Link between theory and practice
No No Curriculum
Chennai, Tamil Nadu
JBM Auto Systems Pvt. Ltd.
Indian Large Manufacturing frames Automotive and auto-motive components
1700 Yes No 5 No Link between theory and practice
No Yes Curriculum
Chennai, Tamil Nadu
Suspa Pneumatics India Pvt. Ltd.
German Large Manufacturing of gas springs Chemicals 350 Yes No No No Curriculum Yes Yes Industry participation
56
Annex
State, Region Company Year of estab-lishment
German, Indian, Joint Venture
Large, Small & Medium
Products Sector Employee Size (training staff in case of training centres)
In-House Training (Y/N)
Demand for Skill
Training Staff (No.)
Are you satisfied with current availability of skills ?
Deficiencies in Skill Devt and Training
Joint Funding (Y/N)
Inter-Industry Collaboration (Y/N)
Recommen-dations for Government
Chennai, Tamil Nadu
Magnetic Auto Control Pvt. Ltd.
Joint Venture
small Vehicle access control automation Automotive and auto-motive components
21 No Yes No No Link between theory and practice
No Yes Curriculum
Chennai, Tamil Nadu
Witzenmann India Pvt. Ltd.
German small Manufacturing of industrial and automotive products Automotive and auto-motive components
50 Yes Yes No Curriculum Yes No Regulatory structure
Chennai, Tamil Nadu
Henkel Teroson India Ltd.
Joint Venture
Large Manufacturers of Adhesives Chemicals 110 Yes Yes No Curriculum Yes Yes Curriculum
Chennai, Tamil Nadu
Heidenhain Optics & Electronics India Pvt. Ltd
2008 German small Manufacturers in machine tool Automotive and auto-motive components
18 Yes No Industry exposure Yes Yes Industry participation
Chennai, Tamil Nadu
Harita Fehrer Ltd. Joint Venture
Large Solution provider of seats and seating systems Automotive and auto-motive components
330 Yes 1 No Link between theory and practice
Yes No Industry participation
Chennai, Tamil Nadu
OBO Betterman India Pvt. Ltd.
2008 Joint Venture
small Assembling electrical and infrastructure components Electricals 62 Yes No Nil No Industry exposure Yes Yes Industry participation
Pune, Maharashtra
Lumax Industries Ltd.
2006 Indian Large Electricals 506 No No No No Link between theory and practice
No Yes Regulatory structure
Pune, Maharashtra
Minda Staneridge Instruments Ltd.
1994 Others Large Electronics 1200 Yes No 3 No Link between theory and practice
Yes Yes Governance structure
Pune, Maharashtra
Yazaki India Ltd. 1997 Others Large Electricals 3000 Yes Yes, Electrical No No Industry exposure Yes Yes Curriculum
Pune, Maharashtra
Dali & Samir Engineering Pvt Ltd.
1972 Indian Small Automotive and auto-motive components
95 No No No No Link between theory and practice
No Yes Governance structure
Pune, Maharashtra
Ranook Autocom-ponents Pvt. Ltd.
2003 Indian Large Automotive and auto-motive components
200 No No No No Link between theory and practice
No No Governance structure
Pune, Maharashtra
Mercedes-Benz India Pvt. Ltd.
1994 German Large Automotive and auto-motive components
10000 Yes Yes, Mech, Electronic
10 No Link between theory and practice
Yes Yes, joint training programmes, setting up training centre
Curriculum
Pune, Maharashtra
Behr India Ltd. Joint Venture
Large Automotive and auto-motive components
1000 Yes No 2 No Link between theory and practice
Yes Yes Regulatory structure
Pune, Maharashtra
Kirolskar Brothers Ltd.
Indian Large Automotive and auto-motive components
300 Yes No No No Link between theory and practice
Yes Yes, common training centre, certification
No
Pune, Maharashtra
General Motors India Pv. Ltd.
Others Large Automotive and auto-motive components
470 Yes No 8 No Link between theory and practice
Yes Yes, term a basic training centre, certification
Governance structure
Pune, Maharashtra
Tata Motors Indian Large Automotive and auto-motive components
5400 Yes Yes, CNC automation
34 No Link between theory and practice
Yes Yes, we will, cluster training certification
Regulatory structure
Pune, Maharashtra
Knorr-Bremsc, Survey no.278
2005 German Large Automotive and auto-motive components
210 No Yes, Automation
No No Link between theory and practice
No Not possible Curriculum
Pune, Maharashtra
Shriniwas Enginee-ring Autocompo-nents Pvt. Ltd.
2007 Indian Large Automotive and auto-motive components
500 No No No No Link between theory and practice
No Yes Curriculum
Pune, Maharashtra
Tata Toyo Radiator Ltd.
1998 Others Large Automotive and auto-motive components
1400 Yes No 4 No Link between theory and practice
Yes Yes, sector skill unial others way of doing
Regulatory structure
Pune, Maharashtra
Bharat Force Ltd. Indian Large Automotive and auto-motive components
4171 Yes No 8 No Link between theory and practice
Yes Yes, more co-operation between companies
Industry participation
Pune, Maharashtra
Galenlel India Ltd. Indian Large Automotive and auto-motive components
6000 Yes Yes, Automati-on, Mechanic
15 No Link between theory and practice
Yes No Regulatory structure
Udhyog Vihar, NCR
Magnetec Mangal Pvt Ltd
Indian Small Electricals 90 No No No Curriculum Yes Yes Industry participation
57
Annex
State, Region Company Year of estab-lishment
German, Indian, Joint Venture
Large, Small & Medium
Products Sector Employee Size (training staff in case of training centres)
In-House Training (Y/N)
Demand for Skill
Training Staff (No.)
Are you satisfied with current availability of skills ?
Deficiencies in Skill Devt and Training
Joint Funding (Y/N)
Inter-Industry Collaboration (Y/N)
Recommen-dations for Government
Chennai, Tamil Nadu
Magnetic Auto Control Pvt. Ltd.
Joint Venture
small Vehicle access control automation Automotive and auto-motive components
21 No Yes No No Link between theory and practice
No Yes Curriculum
Chennai, Tamil Nadu
Witzenmann India Pvt. Ltd.
German small Manufacturing of industrial and automotive products Automotive and auto-motive components
50 Yes Yes No Curriculum Yes No Regulatory structure
Chennai, Tamil Nadu
Henkel Teroson India Ltd.
Joint Venture
Large Manufacturers of Adhesives Chemicals 110 Yes Yes No Curriculum Yes Yes Curriculum
Chennai, Tamil Nadu
Heidenhain Optics & Electronics India Pvt. Ltd
2008 German small Manufacturers in machine tool Automotive and auto-motive components
18 Yes No Industry exposure Yes Yes Industry participation
Chennai, Tamil Nadu
Harita Fehrer Ltd. Joint Venture
Large Solution provider of seats and seating systems Automotive and auto-motive components
330 Yes 1 No Link between theory and practice
Yes No Industry participation
Chennai, Tamil Nadu
OBO Betterman India Pvt. Ltd.
2008 Joint Venture
small Assembling electrical and infrastructure components Electricals 62 Yes No Nil No Industry exposure Yes Yes Industry participation
Pune, Maharashtra
Lumax Industries Ltd.
2006 Indian Large Electricals 506 No No No No Link between theory and practice
No Yes Regulatory structure
Pune, Maharashtra
Minda Staneridge Instruments Ltd.
1994 Others Large Electronics 1200 Yes No 3 No Link between theory and practice
Yes Yes Governance structure
Pune, Maharashtra
Yazaki India Ltd. 1997 Others Large Electricals 3000 Yes Yes, Electrical No No Industry exposure Yes Yes Curriculum
Pune, Maharashtra
Dali & Samir Engineering Pvt Ltd.
1972 Indian Small Automotive and auto-motive components
95 No No No No Link between theory and practice
No Yes Governance structure
Pune, Maharashtra
Ranook Autocom-ponents Pvt. Ltd.
2003 Indian Large Automotive and auto-motive components
200 No No No No Link between theory and practice
No No Governance structure
Pune, Maharashtra
Mercedes-Benz India Pvt. Ltd.
1994 German Large Automotive and auto-motive components
10000 Yes Yes, Mech, Electronic
10 No Link between theory and practice
Yes Yes, joint training programmes, setting up training centre
Curriculum
Pune, Maharashtra
Behr India Ltd. Joint Venture
Large Automotive and auto-motive components
1000 Yes No 2 No Link between theory and practice
Yes Yes Regulatory structure
Pune, Maharashtra
Kirolskar Brothers Ltd.
Indian Large Automotive and auto-motive components
300 Yes No No No Link between theory and practice
Yes Yes, common training centre, certification
No
Pune, Maharashtra
General Motors India Pv. Ltd.
Others Large Automotive and auto-motive components
470 Yes No 8 No Link between theory and practice
Yes Yes, term a basic training centre, certification
Governance structure
Pune, Maharashtra
Tata Motors Indian Large Automotive and auto-motive components
5400 Yes Yes, CNC automation
34 No Link between theory and practice
Yes Yes, we will, cluster training certification
Regulatory structure
Pune, Maharashtra
Knorr-Bremsc, Survey no.278
2005 German Large Automotive and auto-motive components
210 No Yes, Automation
No No Link between theory and practice
No Not possible Curriculum
Pune, Maharashtra
Shriniwas Enginee-ring Autocompo-nents Pvt. Ltd.
2007 Indian Large Automotive and auto-motive components
500 No No No No Link between theory and practice
No Yes Curriculum
Pune, Maharashtra
Tata Toyo Radiator Ltd.
1998 Others Large Automotive and auto-motive components
1400 Yes No 4 No Link between theory and practice
Yes Yes, sector skill unial others way of doing
Regulatory structure
Pune, Maharashtra
Bharat Force Ltd. Indian Large Automotive and auto-motive components
4171 Yes No 8 No Link between theory and practice
Yes Yes, more co-operation between companies
Industry participation
Pune, Maharashtra
Galenlel India Ltd. Indian Large Automotive and auto-motive components
6000 Yes Yes, Automati-on, Mechanic
15 No Link between theory and practice
Yes No Regulatory structure
Udhyog Vihar, NCR
Magnetec Mangal Pvt Ltd
Indian Small Electricals 90 No No No Curriculum Yes Yes Industry participation
58
Imprint
Imprint
©2014BertelsmannStiftung
Bertelsmann Stiftung
Carl-Bertelsmann-Straße 256
33311 Gütersloh
Phone +49 5241 81-0
Fax +49 5241 81-81999
www.bertelsmann-stiftung.de
Responsible
Daniela Röß, Clemens Wieland, Lars Thies
Editing
Christian Heilwagen
GraphicDesign
Nicole Meyerholz, Bielefeld
Photo
© ferrantraite/iStockphoto
DOI 10.11586/2017016
www.bertelsmann-stiftung.de
Address | Contact
Bertelsmann Stiftung
Carl-Bertelsmann-Straße 256
33311 Gütersloh
Program Germany and Asia
Daniela Röß
Project Manager
Phone +49 5241 81-81453
Program Learning for Life
Clemens Wieland
Senior Project Manager
Phone +49 5241 81-81352
Lars Thies
Project Manager
Phone +49 5241 81-81104